The FTC has announced that it has approved the final order in a case against Texas-based TXVT Limited Partnership, d/b/a Trophy Nissan. The settlement prohibits Trophy Nissan from misrepresenting the material terms of any promotion or incentive, including that it will pay off a consumer’s trade-in or the cost of leasing or purchasing the vehicle. Trophy Nissan is also prohibited from failing to clearly and conspicuously disclose material terms of its promotions or other incentives and must comply with the Consumer Leasing Act and the Truth in Lending Act.
This case represents what the FTC has termed its “ongoing efforts to protect consumers in the auto marketplace.” Among the deceptive ads run by Trophy Nissan was one that misled consumers into thinking they could get out of their current loan or lease for only $1. The FTC’s complaint alleges the advertisement was deceptive since consumers could not get out of their loan or lease for that amount. In fact, Trophy Nissan would add the balance of any loan or lease obligation to the balance of a new loan. In another promotion, Max Your Tax, Trophy Nissan claimed it would match tax refunds to use for a down payment, but the small print at the bottom of the ad disclosed it limited match refunds to no more than $1,000. The FTC alleges that Trophy failed to disclose adequately the additional terms.