Agency: Federal Trade Commission (FTC)Washington
Description:
The Federal Trade Commission ("FTC") approved a Final Consent Order involving Bill Roberston & Sons, Inc., dba, Honda of Hollywood ("Honda"). The FTC determined that it had reason to believe Honda violated the FTC Act. Under the Settlement Order, Honda is prohibited from misrepresenting in any advertisement for the purchase, financing, or leasing of motor vehicles. When a vehicle is purchased with financing, the Settlement Order prevents Honda from misrepresenting the amount or percentage of the downpayment, the number of payments or period of repayment, and the repayment obligation over the full term of the loan, including the balloon payment. When leasing a vehicle, Honda shall not misrepresent the total amount due at lease inception, amount down, acquisition fee, capitalized cost reduction, the amounts of all monthly payments, or any other amount required to be paid at lease inception. Honda shall not misrepresent any other material fact about the price, sale, financing, or leasing of any vehicle. Honda is further Ordered to clearly disclose in any advertisement for any consumer lease that the transaction advertised is a lease, whether or not a security deposit is required, the total amount due at lease signing or delivery, the number, amounts, and timing of scheduled payments, and that an extra charge may be imposed at the end of the lease term in which the liability of the consumer at the end of the lease term is based on the anticipated residual value of the vehicle.
For five years after the date of dissemination of this Order, upon request of the FTC, Honda shall make available any documents necessary to demonstrate full compliance with this Order. Honda shall deliver a copy of this Order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this Order. Honda shall secure from each said person a signed and dated statement acknowledging receipt of the Order. Honda shall deliver this Order to current personnel within thirty days after the date of service of this Order, and to future personnel within thirty days after the person assumes such position or responsibilities. It is further Ordered that Honda notify the FTC at least thirty days prior to any change in the corporation(s) that may affect compliance obligations arising under this Order, and within sixty days after the date of service of this Order, file with the FTC a true and accurate report, in writing, setting forth in detail the manner and form of its own compliance with this Order.Within ten days of receipt of written notice from the FTC, Honda shall submit additional true and accurate written reports.
This Order will teminate on April 11, 2034, or twenty years from the most recent date that the United States or the FTC files a Complaint in federal court alleging any violation of the Order.
Date of Action: 4/11/2014