Used-Car Marketers Used Deceptive Ads, States Charge

A Georgia company that runs used-car sale promotions for car dealers has agreed to pay $150,000 and clean up its sales practices, in a settlement with the attorneys general of ten states.

Action Integrated Marketing (AIM) of Norcross, Ga., allegedly used deceptive language that made consumers think the sale vehicles were not part of the dealer's normal inventory, the states charged.

"This company conducted sales events for used car dealerships across the country," Ohio Attorney General Mike DeWine said. "Using phrases such as 'Government Vehicle Disposal' and 'The Repo Joe Sale', AIM's ads typically were designed to steer buyers to sales events under the pretense they would receive a special deal. In reality, most of the ads violated state consumer law."

AIM ran sales events at dealerships and provided related services, such as print and direct mail advertising, signs at the dealerships and additional sales staff for the sale. 

The state attorneys general accused AIM and its Chief Executive Officer, Jay D. Murphree, of designing promotions that created a false sense of urgency, that failed to disclose all mandatory charges and that failed to adequately disclose prices and terms.

Under a multi-state settlement, AIM and Murphree agreed to an injunction placing restrictions on their marketing practices. Additionally, the defendants will pay $150,000 to reimburse the participating states for attorneys' fees. Ohio's share of the payment is $13,000.

The defendants also were assessed a civil penalty of $130,000, which will be suspended provided they comply with the agreement. States participating in the settlement include: Georgia, Idaho, Illinois, Kentucky, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, and Washington.