(Phoenix, Ariz. – Sept. 22, 2008) Attorney General Terry Goddard today announced a settlement with Hyundai of Tempe LLC (Hyundai of Tempe) resolving allegations that the company employed deceptive advertising in a solicitation sent to thousands of Arizona consumers.
According to court documents, Hyundai of Tempe mailed a flyer in June 2007 announcing that consumers would receive 100 percent of the base Manufacturer's Suggested Retail Price ("MSRP") on their 2005 or older vehicle they used as a trade-in on their purchase or lease of a "like or upgraded" 2007 or 2008 Hyundai automobile from Hyundai of Tempe. The advertisement contained statements in smaller type at the bottom of the page which stated "Trade-in allowance not to exceed current NADA book retail value” and “your current vehicle must be in safe operating condition with normal wear and tear. The only adjustments will be made for mileage and reconditioning.”
Goddard alleged that these statements were misleading because the "NADA book retail value" is based on a vehicle’s mileage and overall condition and therefore effectively negated the more prominent "100% Reimbursement" message. According to court documents, no consumer could receive 100 percent of his or her base MSRP on a trade-in since deductions would be taken for mileage and overall condition.