| I remember the good old days when I was | | | | quite well. So, what's the problem? |
| blissfully ignorant about everything except making | | | | Well, the ad was "questionable" in all kinds of |
| the next car deal. | | | | ways, such as: |
| Back in the days when I was a dealership general | | | | Proclaimed that the dealer "used $23 million |
| manager, I couldn't wait for the next big sale, | | | | from 18 banks to revive the local credit market |
| promotion, mailer, etc, whatever it took to make | | | | during this sale" and that we had a "partnership |
| things happen. I gladly signed up for whatever | | | | local banks for a special credit and pricing event" - |
| "Next Big Thing" my boss was willing to pay for. | | | | sorry, but we didn't have any deals with any |
| After all, we had to keep the staff pumped up | | | | banks for any amount of money. |
| and the customers coming in, right? | | | | Stated that these "banks" were offering us |
| Well, since then I've learned a thing or two about | | | | "preferred terms that our competitors couldn't |
| compliance and now realize that many of the | | | | match in this market" - yeah, sure... |
| programs we participated in were questionable at | | | | 3.9% APR available on certified pre-owned |
| best or downright misleading (and thus, illegal) at | | | | vehicles - too bad we didn't have any CPO cars... |
| worst. I never gave those advertisements a | | | | Vehicle payments advertised that virtually no |
| second thought because I figured we paid the | | | | one would qualify for: 60 month financing on an 8 |
| program vendors a lot of money so they must | | | | year-old car with $29 down and an amount |
| be legal and proper, right? And even if the ads | | | | financed of less than $5,000... Good luck with that. |
| were improper, the vendor would be responsible, | | | | (I don't know, maybe one of those 23 phantom |
| not us, right? Ah, wrong and wrong. | | | | banks that I allegedly hooked up with would have |
| There was one program that we did that still | | | | done that kind of a deal?) |
| gives me night terrors when I think about it. I | | | | As far as I'm concerned, I - and the dealer - |
| was GM at a dealership that was part of a group | | | | dodged a bullet with that ad. The worst part, of |
| in California and I got the word from the | | | | course, being the "I" part. My name, my picture |
| corporate office that we signed up for a | | | | and my "quotes" were all over the ad. Was I |
| promotion with a company from another state. It | | | | potentially liable for any violations? Heck yeah! |
| went something like this: the company sent out | | | | Advertising is considered deceptive if "members |
| mailers which were simulated newspaper ads with | | | | of the public are likely to be deceived" or the |
| my picture and all kinds of exciting quotes from | | | | advertisement has a "tendency or capacity to |
| me about this amazing sale we were putting on. | | | | mislead the public". If an ad is deceptive, an |
| Now the really exciting part was that these ads | | | | advertiser has liability regardless of whether there |
| were mailed to people in hand-addressed | | | | was intent to deceive. A dealer has the duty to |
| envelopes, so they were more likely to open it. | | | | investigate the accuracy of any statements made |
| When the addressee opened the envelope, he or | | | | in advertising. You should never assume that |
| she found the "newspaper ad" with a Post-it note | | | | advertising agencies or representatives know all |
| stuck to it signed by "J", an apparent friend of | | | | the laws and regulations governing advertising |
| theirs who saw the ad and thought they would be | | | | compliance. This is particularly true of companies |
| interested. | | | | based in other states, such as internet and direct |
| I loved it! I thought this was a great marketing | | | | mail providers. State advertising laws are very |
| concept. Everyone knows someone with the first | | | | stringent and the responsibility for compliance lies |
| initial J, so it had a certain degree of credibility. Of | | | | with the dealership, not the advertising agency. |
| course, a few customers were a bit savvier and | | | | Bottom line: Be careful when advertising. If you're |
| called the dealership to express their disgust with | | | | not sure about an advertisement or promotion, |
| our "sleazy tactics", but I digress. | | | | it's a good idea to have an attorney look it over. |
| At any rate, I was excited, the staff was | | | | It's probably better than trying to dodge those |
| excited, and, not surprisingly, the promotion did | | | | bullets. |