Complaints about purchasing new or used cars top the list of consumer complaints filed with the Attorney General's Office.  These complaints have provided the basis for aggressive enforcement action.  Over the past 18 months, my office has settled false advertising charges with six car dealerships.  We have recovered more than $400,000 in civil penalties to reimburse damaged consumers and to pay costs and fees.  More than ever before, Arizona auto dealers are on notice that they must advertise truthfully.

Phoenix-based Midway Chevrolet is the latest dealership to settle.  According to court documents, Midway Chevrolet ran a newspaper ad for an "Under 10 Grand Sales Event."  At least one of the cars advertised was not available during the sale.  Midway agreed to settle the case, without admitting any wrongdoing, and not to advertise any vehicles in the future that are not available to the general public for the advertised terms.

Other cases include:

In May, Prieto's Auto Sales entered into an agreement resolving allegations of false advertising.  Our complaint alleged that Prieto's consistently led consumers to believe that the dealership would provide financing, often knowing that the customers could not qualify for a loan.  In some instances, Prieto's repossessed vehicles that had been driven home by consumers who were subsequently denied credit.  The dealership failed to return the customers’ down payments.  In other cases, the vehicles purchased became inoperable soon after purchase.

In December 2005, Holmes Tuttle Ford, Inc. of Tucson settled allegations of deceptive advertising after running an ad claiming "$29 Down and 50% Off MSRP Sale."

In November 2005, Scottsdale Suzuki Superstore and its successor corporation, Suzuki of Tempe, settled allegations that Scottsdale Suzuki Superstore had falsely advertised a guaranteed minimum trade-in and placed misleading information about "dealer installed accessories and service charges" on the window stickers of new cars. 

Also in November 2005, Aufmuth Motors in Tucson settled allegations of deceptive advertising of guaranteed "minimum" trade-in amounts and falsely advertising "free" gifts with purchase.

In January 2005, Precision Toyota settled allegations of falsely advertising new cars for sale at 50 percent off the MSRP.  The consent agreement requires, in addition to a substantial cash payment, that future Precision Toyota ads be clear, truthful and non-misleading.

The fact that these dealerships entered into settlement agreements does not constitute an admission of wrongdoing.  Each settlement sets a high standard going forward for actions the dealerships must not engage in when advertising their vehicles.  Ads by these dealers must be as clear as possible to inform consumers accurately about sales or special offers.

Protecting Arizona consumers is a vital part of our work at the Arizona Attorney General’s Office.  I will continue to pursue cases of deceptive advertising and other types of fraud.  Arizona consumers deserve advertising that's honest.  Whoever places a deceptive ad will be held accountable.  

We will be soon releasing a new video:  Consumers Guide to Buying a Car – Tips to Put you in the Driver's Seat.  This highly informative DVD was created by my office to help Arizona consumers when they buy a new or used car.  The video will provide valuable information about car loans, interest rates and other helpful tips when purchasing a new or used car.  The video will be available soon at www.azag.gov.

If you believe you have been a victim of fraud or you see deceptive ads, please contact the Attorney General's Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the metro areas at 1.800.352.8431.  To file a complaint in person, the Attorney General's Office has 23 satellite offices throughout the state with volunteers available to help.  Locations and hours of operation are posted on the AG Web site at www.azag.gov.  Consumers also can sign up on the Web site to receive consumer advisories from the Attorney General.

Terry Goddard