Friday, 08 December 2017 04:35
Cowboy AG, LLC, a Dallas, Texas, company doing business as Cowboy Toyota and Cowboy Scion (Cowboy Toyota), has agreed to settle Federal Trade Commission charges that it deceptively advertised loan and leasing terms in ads placed in a regional Spanish-language newspaper.The FTC’s administrative complaint charges that Cowboy Toyota ran full-page Spanish-language ads claiming that consumers could buy or lease a vehicle at certain favorable terms that were prominently stated in Spanish in the ads, with material limitations to those terms provided only in fine-print English at the bottom of the ads. The complaint alleges the dealerships violated the FTC Act by misrepresenting many claims, including that:No down payment was required;
The advertised low monthly payments were available to consumers who financed their purchases;
The advertised interest rates, monthly payments, and other terms were available to consumers with bad credit; and
Certain new 2016 Toyotas were available for purchase at the time of the ads in 2017.According to the FTC, Cowboy Toyota’s misrepresentation of the cost of purchasing or leasing cars, qualifications or restrictions for financing or leasing cars, and the availability of cars violated the FTC Act. The dealership also failed to clearly and conspicuously disclose credit or lease terms they are required to state under the Truth in Lending Act or the Consumer Leasing Act when they touted certain “triggering” terms of the credit or lease, such as the monthly payment.