NYC Cracks Down on Car Ads

August 21, 2003
The New York City Department of Consumer Affairs (DCA) announced has cited 19 car dealerships citywide - totaling more than 2,800 counts - for deceptive and misleading advertisements, and in some cases, unlicensed activity.

The agency monitored advertisements placed in various New York City newspapers from February to June 2003 citing the most egregious cases. Dealers face possible penalties with fines ranging from $100 - $350 per count.

“Deliberately enticing car buyers with half-truths and exaggerated claims is not just infuriating, it's illegal,” said DCA Commissioner Gretchen Dykstra. “Dealers should know and abide by longstanding rules that were put in place to protect consumers from deceptive trade practices. Car dealers should also know that we are keeping a close eye on their advertising practices and will continue issuing violations where warranted - guaranteed.”

Under New York City’s Consumer Protection Law and other related laws, dealers are required to adhere to strict rules and regulations regarding advertisements. DCA recently issued violation notices for:

• false advertising (advertising damaged or used cars as “new”),
• false prices (listing “buy for” prices based on restricted rebates or requiring financing that automatically increases the cost of the advertised car),
• failing to disclose required information. (license number, credit, and pricing information was not listed in a clear and conspicuous manner), and
• misleading credit claims (i.e. balloon payments listed in footnotes and implying that credit will be approved instantly).

In some cases dealers were cited for not being licensed by DCA as second-hand auto dealers, a requirement for dealers accepting trade-ins, as well as those that just sell used cars.

DCA charged the following dealers with related violations:

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