Agency: Federal Trade Commission (FTC)Washington
Description:
The Federal Trade Commission ("FTC") approved a Final Consent Order involving Infiniti of Clarendon Hills, Inc. ("Infiniti") deceptive advertising charges. The FTC determined that it had reason to believe Infiniti violated the FTC Act, the Consumer Leasing Act ("CLA"), and implementing Regulation M. Under the Settlement Order, Infiniti is prohibited from misrepresenting in any advertisment for the purchase, financing, or leasing of motor vehicles. When leasing a vehicle, Infiniti shall not misrepresent the total amount due at lease inception, the down payment, acquisition fee,capitalized cost reduction, or any other amount required to be paid at lease inception and the amounts of all monthly payments. When a vehicle is purchased, Infiniti shall not misrepresent the amount or percentage of the down payment, the number of payments or period of repayment, the amount of any payment, and the repayment obligation over the full term of the loan, including the balloon payment. Infiniti is prohibited from misrepresenting any other material fact about the price, sale, financing, or leasing of any vehicle. The Settlement Order further requires Infiniti to comply with Regulation M and the CLA by clearly disclosing in their advertising for any consumer lease, that the transaction advertised is a lease, the total amount due at lease signing or delivery, whether or not a security deposit is required, the number, amounts, and timing of scheduled payments, and that an extra charge may be imposed at the end of the lease term in a lease 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 last date of dissemination of this Order, upon request of the FTC, Infiniti shall make available any documents necessary to demonstrate full compliance with this Order. Infiniti 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 with respect to the subject matter of this Order. Infiniti shall secure from each such person a signed and dated statement acknowledging receipt of the Order. Infiniti 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. Infiniti is further Ordered to 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, shall file with the Commission a true and accurate report, in writing, setting forth in detail the manner and form of its own compliance with this Order.
This Order will terminate on February 20, 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: 2/20/2014