Norm Reeves Honda settles over deceptive ads

CERRITOS - Norm Reeves Honda of Cerritos has reached a settlement with the Federal Trade Commission over allegedly deceptive advertisements.According to civil complaints filed by the FTC, Norm Reeves Honda and three other local dealerships advertised that consumers could buy cars for low prices, finance cars with low monthly payments, and pay nothing upfront to lease cars. Instead, Norm Reeves Honda of Cerritos and Honda of Hollywood turned away potential customers who tried to lease cars advertised as zero-money down, according to the FTC. The L.A. County of Department of Consumer Affairs also accused Casino Auto Sales of La Puente and Rainbow Auto Sales of South Gate of publishing false vehicle prices in their advertisements. As part of the settlement agreement, the dealerships avoided fines but entered into proposed consent orders that prohibit them from making false advertisement claims for the purchase, financing or leasing of vehicles. "For many consumers, buying or leasing a car is one of the most expensive purchases they'll ever make," said Brian J. Stiger, director of the L.A. Department of Consumer Affairs. "It is very important that car dealership advertisements be truthful and do not mislead consumers when they bu, lease and finance their cars."

********** Published: Jan. 30, 2014 - Volume 12 - Issue 42