Be Sure to Follow AG & FTC Advertising Guidelines

Louisiana Dealer caught using misleading COVID-related claims to sell vehicles

The COVID crisis has opened up a wave of deceptive advertising that has gotten the attention of consumer agencies.

While the following story sounds extreme, it is a real case. In Louisiana, a used car dealer was cited by the FTC for issuing a promotional mailer with the following message:

“COVID-19 ECONOMIC AUTOMOTIVE STIMULUS PROGRAM RELIEF FUNDS AVAILABLE” on the envelope and containing a “check” for $3,344.68 from the STIMULUS RELIEF PROGRAM using the memo line COVID-19 AUTO STIMULUS”.

The dealer was hoping to entice consumers to his tent sale under the pretext the “check” could be used toward the purchase price of a vehicle.

The problem for the dealer is there’s no “COVID-19 Auto Stimulus Program”, the check isn’t a check and the promotion has nothing to do with any government stimulus program. In light of the focus on the COVID crisis by the highest levels of NYS government, it is likely that the NYS Attorney General will be examining auto dealer advertising closely.

Dealers are reminded to review the AG’s Advertising Guidelines for Auto Dealers before developing any advertising campaigns