• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • First Look: 2024 Toyota Grand Highlander
  • Tesla Takes Top Two Sales Spots in California for 2022
  • New Vehicle Buyers Face Squeeze as Interest Rates Climb
  • The Inside Story of the 2024 Ford Mustang Dark Horse
  • Honda’s Big Bet on Fuel-Cell Tech Doesn’t Stop with Passenger Cars
  • First Look: 2024 BMW X5 and X6
  • Nissan, Renault and Mitsubishi Expand Global Partnership
  • Better the Second Time: Mercedes-Benz eSprinter
  • VinFast Raises Launch Concerns by Cutting 80 U.S. Jobs
  • Faraday Future Secures Cash, Prepares to Build Cars
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Kia Sportage Hybrid
    • First Drive: 2023 Honda Accord
    • A Week With: 2023 Lexus GX 460 Black Line
    • A Week With: 2023 BMW X1 xDrive28i
    • A Week With: 2023 Kia Niro EV
    • A Week With: 2023 Hyundai Palisade Calligraphy
    • A Week With: 2023 Ford F-150 Raptor R 4x4 Super Crew
    • A Week With: 2023 Genesis Electrified G80 AWD
    • A Week With: 2023 Land Rover Defender 110 V-8
    • First Drive: 2023 Honda Pilot TrailSport
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automobiles > Feds Crack Down on Crooked Auto Dealers

        Feds Crack Down on Crooked Auto Dealers

        Investigation reveals false ads, fake odometer readings.

        Michael Strong
        Michael Strong , Managing Editor
        March 26, 2015
        The FTC is cracking down on dealers that use deceptive practices to put buyers into bad deals.

        A Federal Trade Commission investigation into auto dealers across the U.S. resulted $2.6 million in consumer refunds and other fees and fines for criminal and civil violations.

        Civil and criminal charges coming about as a result of “Operation Ruse Control,” included deceptive advertising, automotive loan application fraud, odometer fraud, deceptive add-on fees, and deceptive marketing of car title loans.

        A Safe Bet!

        The commission, also known as the FTC, instituted 252 enforcement actions – 187 in the U.S. and another 65 in Canada – and it appears that more could be on the horizon. It’s the second time in the agency has discovered problem with auto dealers. It turned up 10 infractions last year related to loans and advertising.

        “The clear message is that across this country, and indeed internationally, law enforcement agencies are on the lookout for deceptive and illegal practices by auto dealers, and will take whatever action is necessary to protect consumers,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection.

        “Car ads must be truthful, loan terms must be clear, and dealer practices must be honest,” she added. “That’s why our partners are working together to crack down on deceptive marketing about car sales, leasing and financing.”

        The FTC received expanded authority over auto dealers recently under the Dodd-Frank Act and in addition to violations related advertising and loan and leasing fraud, it’s tackling add-ons, which is the practice of a dealer or other third party adding to the vehicle sales, lease, or finance agreement charges for other products or services.

        A few examples include extended warranties, payment programs, guaranteed automobile protection (commonly called GAP or GAP insurance), credit life insurance, road service, theft protection and undercoating.

        (Kia gives full looks at new Optima sedan ahead of NY Auto Show. For more, Click Here.)

        The agency provided some examples of what they discovered.

        National Payment Network Inc. (NPN), in San Mateo, California, offered a program that gave buyers a small discount if they agreed to have payments automatically taken from their bank accounts. However, the fees charged to set up the program offset the savings. For example, a standard five-year auto loan would charge $775 in fees.

        (Click Here for details about Toyota’s new “architecture.”)

        In a related case, the FTC alleged that Matt Blatt dealerships, with multiple locations in New Jersey, violated the FTC Act by failing to disclose or adequately disclose the fees associated with NPN’s add-on service and that many consumers would not save money overall due to the program’s significant fees. Matt Blatt dealerships received a commission for each of the more than 1,000 consumers they enrolled.

        Both agreed to settle cases against them. NPN is refunding $1.5 million to customers and waiving an additional $949,000 to customers during the waiver period while Blatt will pay $184,000 in fees.

        (To see more about why gasoline usage is at its lowest levels since 1984, Click Here.)

        Cory Fairbanks Mazda of Longwood, Florida; Jim Burke Nissan of Birmingham, Alabama; and Ross Nissan of El Monte, California, were all charged with false advertising for promoting sales, as well as lease or finance options, without disclosing relevant terms, such as required down payments. In the end, the FTC said any value of the offer was canceled out by “fine-print disclaimers.” The dealers agreed to settle with the FTC.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published
        2024 Toyota Grand Highlander - front 3-4 REL

        First Look: 2024 Toyota Grand Highlander

        Yesterday
        2021 Tesla Model Y blue

        Tesla Takes Top Two Sales Spots in California for 2022

        Yesterday
        February car sales

        New Vehicle Buyers Face Squeeze as Interest Rates Climb

        Yesterday

        3 responses to “Feds Crack Down on Crooked Auto Dealers”

        1. Jorge says:
          March 27, 2015 at 9:25 am

          …and if you do the math you’ll find that the so called fines are actually less than the revenues generated by consumer fraud thus the perps still come out financially ahead after they were fined. As Microsoft and Intel would probably say if they were honest: “The fines are the cost of doing business. In the end we reap millions in profit from consumer fraud and violation of anti-trust laws. Why would we want to discontinue these illegal practices”?

          IMO the FTC imposes “token” punishment for massive consumer fraud. They are not really protecting consumers, they are doing just enough to get media coverage so that it appears as though they are protecting consumers. The FTC/FCC commissioners should be prosecuted for dereliction of duty, IMO.

          There are thousands of consumer fraud complaints against the cable and telco companies and the FTC and FCC have done virtually nothing to force these unscrupulous companies to cease and desist nor punish these companies so it’s no longer profitable to inflict outrageous consumer fraud on their customers. These government agencies appear to be bought off by big business and it shows in the failed punishment for consumer fraud.

          Reply
          1. Scott says:
            April 5, 2015 at 2:08 pm

            Good points, Jorge! And this applies even more to the banking industry. The SEC is supposed to regulate them, but it’s more the other way around. And the pay to play system is very much in force. Recently Elizabeth Warren had a meeting with Jamie Dimon of JP Morgan Chase; Dimon smirked at her and said ‘go ahead, fine us. We can afford it.’
            When a Canadian woman who used to work for Chase offered to testify for the feds about their illegal mortgage practices, Chase upped their multi-million fine offer to 9 Billion! This is not regulation, it’s corruption.

            Reply
        2. Red Sage says:
          March 31, 2015 at 4:15 am

          This looks like a solid win for members of NADA.

          Reply

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: