On September 29, the Federal Trade Commission charged nine Los Angeles-area auto dealerships and their owners with using a wide range of deceptive and unfair sales and financing practices. The FTC's complaint challenged the dealerships' "yo-yo" financing tactics, described as abusive spot deliveries. The FTC also alleged that the dealerships packed extra, unauthorized charges for "add-ons," or aftermarket products and services, into car deals financed by consumers, used deceptive advertising practices, and used phony online reviews to tout the dealerships and combat negative reviews posted by consumers.

The FTC's complaint also charged the defendants with violating the Truth in Lending Act and Regulation Z, and the Consumer Leasing Act and Regulation M, for failing to clearly disclose required credit information and lease information in their advertising.

News Release