General Motors Corporation

Volume 123 · 123 F.T.C. 241

Citation: 123 F.T.C. 241
Docket: C-3710
Complaint: 1997-02-06
Decision: 1997-02-06
Document type: consent order
Case type: consumer protection
Statutes: FTC Act (section 5); Truth in Lending Act
Industry: automobile manufacturing
Outcome: consent order entered
Relief: cease_and_desist; affirmative_disclosure
Commission counsel: Rolando Berrelez, Sally Pitofsky and Lauren Steinfeld
Respondent counsel: Catherine Karol:- in-house counsel, Detroit, MI
Source: Original volume PDF
Original PDF: This decision as a PDF

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General Motors Corporation, 123 F.T.C. 241 (1997). Consumer Law Library, https://consumerlawlibrary.org/decisions/v123-0029

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Order status: expired_sunset:2017-02-06. Sunset may be extended by the latest qualifying federal-court complaint alleging an order violation; complaints, dismissal/appeal outcomes, and respondent-specific extensions are not fully tracked.

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IN THE MA ITER OF GENERAL MOTORS CORPORATION CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE CONSUMER LEASING ACT, THE TRUTH IN LENDING ACT AND THE FEDERAL TRAD~ COMMISSION ACT Docket C-3710. Complaint, Feb. 6, 1997--Decision, Feb. 6, 1997 This consent order prohibits, among other things, a Michigan-based automobile manufacturer from misrepresenting the total amount due at lease inception, requires the manufacturer to provide consumers with clear, readable, and understandable cost information in their car lease and financed purchase advertising, requires advertisements, that reference an initial payment or state that no initial payment is due, to clearly and conspicuously disclose, as applicable, that the deal is a lease, and to disclose the fact that an extra charge may be imposed at the end of the lease based on the residual valu~ of the car. The consent order also prohibits the respondent from misrepresenting the existence or amount of any balloon payment or the annual percentage rate for advertised loans.

Appearances For the Commission: Rolando Berrelez, Sally Pitofsky and Lauren Steinfeld.

For the respondent: Catherine Karol:- in-house counsel, Detroit, MI.

COMPLAINT The Federal Trade Commission, having reason to believe that General Motors Corporation, a corporation ("respondent" or "General Motors"), has violated the provisions of the Federal Trade Commission Act, 15 U.S.C. 45-58, as amended, the Consumer Leasing Act, 15 U.S.C. 1667-1667e, as amended, and its implementing Regulation M, 12 CFR 213, as amended, and the Truth in Lending Act, 15 U.S.C. 1601-1667, as amended, and its implementing Regulation Z, 12 CFR 226, as amended, and it appearing to the Commission that this proceeding is in the public interest, alleges:

1. Respondent General Motors Corporation is a Delaware corporation with its principal office or place ofbusiness at 3044 West 13 94 FEDERAL TRADE COMMISSION DECISIONS Complaint 123 F.T.C.

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