FTCRecently, I co-authored the below advertising alert with Advertising, Marketing & Promotions Partner, Matt Smith.

On the heels of recent high-profile enforcement actions by both the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) against the automobile industry, the New York Attorney General (NYAG) has now zeroed in on the industry as well.

Over this past summer, NY AG Eric Schneiderman settled numerous allegations of deceptive practices with more than 25 automobile dealerships throughout the state, requiring the dealerships to collectively pay over $14 million in restitution and penalties. And Schneiderman has indicated that his office intends to continue monitoring New York auto dealers and will bring more enforcement actions as necessary.


In March 2015, as part of Operation Ruse Control, a nationwide and cross-border crackdown on automotive dealer sales practices, the FTC announced settlements totaling more than $2.6 million. These settlements were with a number of automobile dealerships and an automatic payment company involving alleged fraudulent vehicle purchase add-ons and deceptive advertising (click here for more information).

Furthermore, the CFPB brought an action against an auto loan company for what it characterized as “aggressive debt collection tactics” against service members, including allegations that the company used a combination of illegal threats and deceptive claims to collect debts. Following these actions, the NYAG then also made headlines at the expense of the auto industry.

To read the full D&G alert, please click here.