Russ Vento Chevrolet, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF RUSS VEKTO CHEVROLE , ET AL. CO:-SEKT ORDER, ETC. , IK REGARD TO THE ALLEGED VIOLATION OF THE TRUTH IX LEKDING A:-D FEDERAL TRADE COMMISSION ACTS Docket C-21,10. Cumplaint, Ala!! 197J-Deci sio)I , Jluy "-11, 1973. Consent order requiring a Denver, Colorado, ne\.\ and used car and motor home vehicle dealer, among other things to cease violating the Truth in Lending Act by failing to disclose to consumers, in connection with the extension of consumer ('redit, such information as required by Regulation Z of the said Act.

Complaint 82 F.

CO:vPLAINT Pursuant to the provisions of the Truth in Lending Act and the implementing regulations promulgated thereunder and the Federal Trade Commission Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Russ Vento Chevrolet, Inc. , a corporation and Russ Vento, individually and as an officer of said corporation, and Roberts. Hall, individually and as general sales manager of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and implementing regulations, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Russ Vento Chevrolet, Inc. , is a corporation organized, existing, and doing business under and by virtue of the Jaws of the State of Delaware, with its principal offce and place of business located at 1156 Broadway, Denver Colorado.

Respondent Russ Vento is president of the corporate respondent. He formulates, directs, and controls the policies acts, and practices of the corporate respondent, including the acts and practices hereinafter set forth. His address is the same as that of the corporate respondent.

Respondent Robert J. Hall is general sales manager of the corporate respondent. He prepares and is responsible for the advertising used by the corporate respondent. His address is the same as that of the corporate respondent. PAR. 2. Respondents are now, and for some time last past have been, engaged in the advertising, offering for sale, and sale of new and used automobiles, motor homes, campers, and travel trailers to the public.

PAR. 3. In the course and conduct of their business as aforesaid, respondents have caused, and are now causing, advertisements, as " advertisement" is defined in Section 226. 2(b) of Regulation Z , to be placed in various media for the purpose of aiding, promoting, or assisting, directly or indirectly, the credit sales, as " credit sale" is defined in Section 226. 2(n) of Regulation Z, of respondents' said automobiles, motor homes campers, and travel trailers.

PAR. 4. Subsequent to July 1 , 1969 , certain of the advertisements referred to in Paragraph Three above have 1509 RUSS VENTO CHEVROLET, I:-C. , ET AL. 1507 Complain t stated the amount of the down payment required or that no downpayment is required, or the amount of installment payments, without also stating, as required by Section 226. 10(d)(2) of Regulation Z, in terminology prescribed under Section 226. 8 of Regulation Z, and in the manner and form prescribed under Section 226.6(a) of Regulation Z, all of the following:

1. the cash price:

2. the amount of the downpayment required or that no down payment is required, as applicable; 3. the number, amount, and due dates or period of payments scheduled to repay the indebtedness;

4. the amount of the finance charge expressed as an annual percentage rate; and 5. the deferred payment price.

PAR. 5. Pursuant to Section 103(q) of the Truth in Lending Act, respondents' aforesaid failures to comply with the provisions of Regulation Z constitute violations of that Act, and pursuant to Section 108 thereof, respondents have thereby violated the Federal Trade Commission Act. DECISIO:- AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereto with violation of the Federal Trade Commission Act, and the notice of saidrespondents having been served with determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondents and counsel for the commission having thereafter executed an agreement containing a consent order and admission by the respondents of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission s rules; and The Commission having considered the agreement and having provisionally accepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of thirty (30) days and having duly considered the 34(b) of its rules,comments filed thereafter pursuant to Section 2. no\\' in further conformity with the procedure prescribed in Section 2. 34(b) of its rules, the Commission hereby issues its ), 1510 FEDERAL TRADE COMMISSION DECISIO:-S Decision and Order 82 F. complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent Russ Vento Chevrolet, Inc. , is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 1156 Broadway, Denver, Colorado. Respondent Russ Vento is an officer of said corporation. He formulates, directs, and controls the policies, acts, and practices of said corporation, and his principal office and place of business is located at the above stated address. Respondent Robert J. Hall is general sales manager of said corporation. He prepares and is responsible for the advertising used by the corporate respondent. His address is the same as that of the corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and ofthe respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondent Russ Vento Chevrolet, Inc. , a corporation, and its officers, and Russ Vento, individually and as an officer of said corporation, and Robert .1. Hall, individually and as general sales manager of said corporation, trading under said corporate name or under any trade name or names, their successors and assigns, and respondents ' agents representatives and ernployees, directly or through any corporation, subsidiary, division, or other device, in connection with the arrangement, extension, or advertisement of consumer credit in connection with the sale of automobiles, motor homes campers, travel trailers, or other products or services, as advertisement" and " consumer credit" are defined in regulation Z (12 C. R. 226) of the Truth in Lending Act (Pub. L. 90-321 15 U. C. 1601 et seq. do forthwith cease and desist from: 1. Representing, directly or by imphcation, in any advertisement, as " advertisement" is defined in Regulation , the amount of the downpayment required or that no down payment is required, the amount of any installment payment, the dollar amount of any finance charge, the number of installments or the period of repayment, or that there is no charge for credit, unless all of the following items 1511 RUSS VENTO CHEVROLET, IXC., ET AL. 1507 Decision and Order are stated in terminology prescribed under Section 226. 8 of Regulation Z:

a. the cash price;

b. the amount of the down payment required or that no down payment is required, as applicable; c. the number, amount, and due dates or period of payments scheduled to repay the indebtedness if the credit is extended;

d. the amount of the finance charge expressed as an annual percentage rate, and e. the deferred payment price.

2. Failing to print the term " annual percentage rate more conspicuously than other terminology required by Regulation Z, when that term is required to be used by Hegulation Z.

L Failing, in any consumer credit transaction or advertisement, to make all the disclosures, determined in accordance with Sections 226.4 and 226.5 of Hegulation Z , in the manner, form and amount required by Sections 226. 226. 226. 226. 9 and 226. 10 of Regulation Z. 4. Failing to deliver a copy ofthis order to cease and desist to all present and future personnel of respondents engaged in any aspect of preparation, creation, and placing of advertising, all persons engaged in reviewing the legal sufficiency of advertising, and all present and future agencies engaged in preparation, creation, and placing of , and filing to secure advertising on behalf of respondents from each such person or agency a signed statement acknowledging receipt of said order.

It is further ordered That respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent such as dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in the corporation which may affect compliance obligations arising out of the order.

If is further ordered That the individual respondents named herein promptly notify the Commission of the discontinuance of their present business or employment and of their affiliation with a new business or employment. Such notice shall include respondents' current business address and a statement as to the nature of the business or employment in which they are engaged 1512 FEm;RAL TRADE COM:vISSION DECISIONS Decision and Order 82 F. as well as a description of their duties and responsibilities. It is further ordered That respondents shall, within sixty (60) days after service upon them ofthis order, file, individually, with the Commission, a report in writing, setting forth in detail the manner and form in which each of them has complied with this order.