Suntrup Buick-Pontiac-Gmc Truck, Inc

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

IN THE MATTER OF SUNTRUP BUICK-PONTIAC-GMC TRUCK, INC. ET AL. CONSENT ORDER, ETC, IN REGARD TO ALLEGED VIOLATI001 OF THE CONSUMER LEASING ACT, THE TRUTH IN LEI'DING ACT AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3779. Complaint. Jan. 1998--Decision. Jan. , 1998 This consent order prohibits, among other things, two St. Louis Missouri-area automobile dealerships and their officer from omitting or buryng key cost information in small, and at times, uneadable print in their automobile lease advertisements and from misrepresenting the costs of leasing, including the total amount due at lease signing. The consent order requires the respondents to disclose certain information clearly and conspicuously and to comply with all provisions of the specified acts and regulations. Appearances For the Commission: Lauren Steinfeld and David Medine. For the respondents: Paul Simon, Helfrey, Simon Jones St. Louis, MO.

COMPLAINT The Federal Trade Commission, having reason to believe that Suntrup Buick-Pontiac-GMC Truck, Inc. and Suntrup Ford, Inc. corporations, and Thomas Suntrup, individually and as an officer of the corporations ("respondents ), have violated the provisions ofthe Federal Trade Commission Act, 15 U.S.e. 45- , as amended, the Consumer Leasing Act, 15 U. C. 1667- 1667e, as amended, and its implementing Regulation M, 12 CFR213, as amended, and the Truth in Lending Act, 15 U. e. 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 Suntrup Buiek-Pontiae-GMC Truck, Inc. is a Delaware corporation with its principal offce or place of business at 4200 N. Service Road, St. Peters, Missouri. Respondent offers automobiles for sale or lease to consumers. 2. Respondent Suntrup Ford, Inc. is a Missouri corporation with its principal office or place of business at 12750 Saint Charles Rock Complaint 125 FTC. Road, Bridgeton, Missouri. Respondent offers automobiles for sale or lease to consumers.

3. Respondent Thomas Suntrup is an officer of the corporate respondents. Individually or in concert with others, he fonnulates directs, or controls the policies, acts, or practices of the corporations including the acts or practices alleged in this complaint. His principal offces or places of business are the same as those of Suntrup Buiek- Pontiae-GMC Truck, Inc. and Suntrup Ford, Inc. 4. Respondents have disseminated advertisements to the public that promote consumer leases, as the tenns " advertisement" and consumer lease" are defined in Section 213.2 of Regulation M, 12 CFR 213. , as amended.

5. Respondents have disseminated advertisements to the public that promote credit sales and other extensions of closed-end credit in consumer credit transactions, as the tenns "advertisement credit sale " and "consumer credit" are defined in Section 226.2 of Regulation Z, 12 CFR 226. , as amended. 6. The acts and practices ofrespondents alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S. e. 44. LEASE ADVERTISING 7. Respondents have disseminated or have caused to be disseminated consumer lease advertisements ("lease advertisements for automobiles in the print media, including but not necessarily limited to the attached Exhibits A through E. These lease advertisements contain the following statements: A "NO PAYMENT TIL APRIL ' 95 -- '95 GRAND AM SEDAN $225** per mo. lease (A fme print statement at the bottom of the ad states, "**36 mo. lease with 10% of MSRP cap reduction plus first payment sec. deposit & license plus tax with 12 000 mi. per yr. and approved credit. "

;'01 PAYMENT TIL Aprll ' 95 -- 1995 THuNDERBIRD LX. $275** per mo. lease (A fme print statement at the bottom of the ad slates, "**24 mo. lease with 10% of MSRP cap reduction plus first payment sec. dep. & license plus tax with 15 000 mi. per year and approved credit J (Exhibit A) B. "NO PA YME"T TIL Aprll ' 95 -- '95 BOJ\l\EVILLE SE SEDAN. . . 5281 ** per mo. lease SUNTRUP BUICK-PONTIAC-GMC TRUCK, INC., ET AL. Complaint '1**36 mo. lease with 10% of (A fme print statement at the bottom of the ad states, MSRF cap reduction plus first payment sec. deposit & license plus tax with 12 000 mi. per yr. and approved credit "

1994 ESCORT LX $178** per mo. lease LA fine print statement at the bottom of the ad states, "**24 mo. lease with 1 0% of MSRF cap reduction plus first payment sec. dep. & license plus tax with 15 000 mi. per year and approved credit "J(Exliibit B) C. " 1995 PONTIAC GRAND AM COUPE... LEASE $188** 36 MONTHS" (A fine print statement at the bottom of the ad states, "* A11 prices include a11 rebates and incentives, and commercial rebates where applicable. For cony. vans add $799 for trim kit Vehicle pictures may differ from actual pictures. 10% of MSRP cap reduction plus first payment sec. deposit and license plus tax with 000 miles per year and approved credit LEASE $249** PER MO. $13 999* 1995 TAL'RUS" (A fine print statement at the lower right hand corner of the ad states, "** 24 mo. Lease with 10% ofMSRF cap reduction plus first payment sec. dep & license plus tax with 15 000 mi. per year and approved credit J(Exhibit C) D. "NO PAYMENT TIL MARCH ' 95 -- '95 GRAND AM COUPE SE . . LEASE $262** per mo.

(A fine print statement at the bottom of the ad states, "**36 mo. lease with 10% of MSRP cap reduction plus first payment sec. deposit & license plus tax with 15 000 mi. per yr. and approved credit "J (Exhibit D) $1995 PROBE LEASE 5215** PER MO.

(A fme print statement at the bottom of the ad states " **24 mo. lease with 10% of MSRF cap reduction plus first payment sec. dep. & license plus tax with 15 000 mi. per year and approved credit J (Exhibit D) E. "'95 CENTURY SEDAN $249** per mo. lease (A fine print statement at the bottom of the ad states, "**36 mo. lease with 10% of MSRP cap reduction plus first payment sec. deposit & license plus tax with 15 000 mi. per yr. and approved credit "J (Exhibit E) FEDERAL TRADE COMMISSION ACT VIOLATIONS COUNT I: MISREPRESENTATION OF C\CEPTION FEES 8. In lease advertisements, including but not necessarily limited to Exhibits A, B , and D, respondents have represented, expressly or by implication, that consumers have no monetary obligations at lease signing, including no obligation to pay a periodic payment. 9. In truth and in fact, consumers are required to pay significant amounts at lease signing, including but not limited to one or more of the following: a downpayment, security deposit, documentary fee, a periodic payment, and taxes. Therefore, respondents' representation as alleged in paragraph eight was, and is, false or misleading. Complaint 125 FTC. 10. Respondents' practices constitute deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act, 15 U. e. 45(a).

COUNT II: FAILURE TO DISCLOSE ADEQUA TEL Y INCEPTION FEES 11. In lease advertisements, including but not necessarily limited to Exhibits A through E, respondents have represented, expressly or by implication, that consumers can lease the advertised vehicles at the tenns prominently stated in the advertisements, including but not necessarily limited to the monthly payment amount. 12. These lease advertisements do not adequately disclose additional tenns pertaining to obligations at lease inception, including but not necessmily limited to one or more of the following charges: a required downpayment, security deposit, documentary fee, first month' s payment, and taxes. This infonnation does not appear at all appears in very fine print, and/or is referenced by asterisks that do not correspond to the asterisks depicted in the main text of the advertisements.

13. These additional tenns would be material to consumers in deciding whether to visit respondents' dealership and/or whether to lease an automobile from respondents. The failure to disclose adequately these additional tenns, in light of the representation made was, and is, a deceptive practice.

14. Respondents' practices constitute deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act, 15 U. e. 45(a).

CONSUMER LEASING ACT A'ID REGULA TIOJ\ M VIOLA nONS COUNT Il: FAILURE TO DISCLOSE REQUIRED INORcYI TION CLEARLY AND CONSPICUOUSLY 15. In lease advertisements, including but not necessarily limited to Exhibits A through E, respondents have stated a monthly payment amount and/or the number ofrequired payments. 16. These lease advertisements have failed to disclose clearly and conspicuously the following items of infonnation required by Regulation M: the total amount of any payment such as a security deposit or capitalized cost reduction required at the consummation of the lease or that no such payments are required; the total of scheduled payments due under the lease; a statement of whether or not the lessee has the option to purchase the leased property and at what price and SUNTRUP BUICK-PONTIAC- GMC TRUCK, mc. ET AL. Complaint time or, in lieu of disclosure of the price, the method of determining the purchase-option price; and a statement of the amount or method of determining the amount of any liabilities the lease imposes upon the lessee at the end of the term.

17. Respondents' practices have violated Section 184 of the Consumer Leasing Act, 15 U. e. 1667e, and Section 213.5(c) of Regulation M, 12 CFR 213.5(c).

CREDIT ADVERTISIJ'G 18. Respondents have disseminated or have caused to be disseminated credit sale advertisements ("credit advertisements ) for automobiles in the print media, including but not necessarily limited to the attached Exhibits A, B , and E. These advertisements contain the following statements:

A." '95 FlREBIRDS.. . $17 995*"

(A fine print statement at the bottom of the ad states, "* All prices include all rebates & incentives. Also includes $1000 cash or trade equity and commercial rebates where applicable. . J (Exhibit A) 95 SONOMA. . . $13,995*" n*All prices include all(A fine print statement at the bottom of the ad states, rebates & incentives. Also includes $1000 cash or trade equity and commercial rebates where applicable. , FORD CARS 3. 9% FmANCmG" (Exbibit B) C. Along with the statements described in paragraph five, Exhibit C contains the following credit tents, " 75% A. R. FI0ANCJ:G ON CONTOURS for Mos. PLUS $500 REBATE"

9% FINANCIIG or $600 REBATE.. . 1995 RANGER XLT" (Exhibit C) D. " 9% APR FINANCmG FOR 48 MOJ\THS OR $750 CASH BACK ' FORD TAURUS" (Exhibit D) E. " '95 BOJ\OIEVILLE SE SEDAN. . . 3.6% FINANCmG Available on Bonnevilles... 518 995*" lA bar is superimposed over this sale price figure that states "MAKE US AJ\ OFFER''' (A fine print statement at tbe bottom of the ad states, "*"$1000 DOWJ CASH OR TRADE EQUITY FOR QUALIFIED FIRST TIME NEW CAR OR TRUCK BUYERS & GMC REBATE") (Exhibit E) TRUTH IN LENDING ACT AND REGULATION Z VIOLATIONS COIDTIV: F Allure TO DISCLOSE REQ1.IRED INFORMA TION 19. In credit advertisements, including but not necessarily limited to Exhibits A through E, respondents have stated the amount of a Complaint 125 FTC. downpayment and/or the number of payments or period of repayment as terms for financing the purchase of the advertised vehicles. 20. These advertisements have failed to disclose the following items of information required by Regulation Z: the amount or percentage of the downpayment, the terms ofrepayment, and/or the annual percentage rate " using that term and if the rate may be increased after consummation, that fact.

21. Respondents' practices have violated Section 144 of the Truth in Lending Act ("TILA"), 15 U.S. e. 1664, and Section 226.24(e) of Regulation Z, 12 CFR 226.24(e).

COUNT V: FAILURE TO STATE RATE OF FINANCE CHARGE AS AN ANNUAL PERCENT AGE RATE 22. In credit advertisements, including but not necessarily limited to Exhibits B, C, and E, respondents have stated a rate of finance charge without stating that rate as an "annual percentage rate " using that term or the abbreviation "APR " as required by Regulation Z. 23. Respondents' practices have violated Section 144 ofthe TILA 15 U.S. e. 1664, and Section 226.24(b) of Regulation Z, 12 CFR 226. 24(b ).

Commissioner Thompson and Commissioner Swindle not participating.

:: ,. : . _ . . ,.. . . . . \ , ,,, ,,. ,,: . ; . j \ :,:::.,:;: : , ....: ,. , ,,, ,, , ,,,,_.,,,,,. , :: ,...;j. , / ..... SUNTRUP BUlCK-PONTIAC-GMC TRUCK, INC., ET AL Complaint EXHIBIT A BurCK PONTIAC C3MCTIU nnnnnnTltJupDWft 111 1 '; I I mG nrt S!:1CE Ron ;;E ST. mRUSR C( RCID u m ' I(:EHOUAS 'Um"..o. "C" "IOGE", 0800 .Iii G:l :.-: 291-2334 t; :t'"" -E' I' i 800. 262-8425 V. 800-831-63651'"'' " . m oI3UICK939 ";2; NO:PAYMENT TIC. APRIL 95 . NO PA'YMER'rJ,T'L'47i"J:jlj9dj!,4AR& TRUe",S-"'; NOPAYMENT,PONTIAC TILAPRU':' 9S NO PAYMENT' T'CAPRIL 5".; ii 95 p :ND .!I 95 GRAND NEW AMSECAN -- SESEDAN "" :S"1R 95 F-150 :; 516,45 i:' 995 : , R."s,,, '" eon lll .c, ER LlMITE ME ONLY S!:CAH , :if: 519,595 t:i= s17 995 ' I . $12 595' Co" ' 94CM 4x4 GULF STREAM '''",w . . c " c. . .. . SPORT _H -",! :1 '9795' I JW '2995'-. I",..;""",- '17,' 99" : ,o:VAN .I"Iat - FU I , 1 , /Y, 1\0 '13.995 '18,995' I '18.995 '34' 77 '717 TTTTTT TTTTTTTTTTTTTTTTTTTYTTY' JJ J i lJ lJ JJ J i lJ Sl! r:' :JI' .0.1.1r. .:ri FORD .. .. ::g:. .. :,,,_ .. ...:, . , ,,..,..::g ;:, ,.. .:, ;:: ,:$ !! . \\ .. FEDERAL TRADE COMMISSION DECISIO;-S Complaint 125 FTC. EXHIBIT B BUICK PONTIAC GMCTIU .

UNTRUP' 1995 NEW YEAR SELL. BRATION Ii' mlLmYI mIDln1 7.. ST, Hil ROI ! ID IT m ISH HOURS, cms'RI.u, pmBS, WD 6:t" IQmu n. I, :. i, * 1939- 0800 '-": 291 2334 1;;;;""00"' T:Y LL 800-262-84251 m1.800.831.6365i" NO PAYMENTBUICKTIL APRIL ' FORD CARS .L". FINANCING r.

its r. 116 5Q2--- ';a ;r, '2 7 PAYMENTPONTIACTIL APRIL FORD TRUCKS . 19'5GRJNtI '!G HD"RI 1 r: 1994 AN !EDAN SI Sf DAN RANGER NEW ;;;:E-- '" I " 95 1501JI:; '13,995' I i "'"".: '16,45' !Jq -.-. "' , . BONmIW' "TOCHQOS.'OO"95F!REBIRD 7MT ;;r "O;;y HUCAI =""o'- - -"'-"- 1799 "'11"412395' 19,59 :: :. :: , ;/ :::, ,, . . , :::::!, ;;: : :(. SUNTRUP BUICK-PONTIAC-GMC TRUCK, INC., ET AL. Complaint EXHIBIT C '''",C"''''''"

SUB:TRUP AUTO jCA LEASE - - "'O lfASf , .;2, ,"0 P17 '!:;"'I_"I"'.' 11''':He1'' J.""" :I:H8j'" fI-",_---" - 5188"'''Sf .. 52,6! l'I 1JltfJfJ II""'I.' 1""'I' s 5 #l.Jtt (t.reA!i::o"SUNTRUP_, 'I" jBWCK m.'" W' l1'" ::J' , I :r!f!jW !;?2- :;;:r!q,ik ":iE7f :5) I un..eH1;It'TIACU"':l I'lln" "I"'j1"" j."1;/llin"" 10( 'II:I I im JGiMlC mUCKS i'"

;fl ;:J0""

1''''' "" SUNTRUP . . ,, , .. , .. . ,,,.:;: ;: .. / , ,, .. : . ,, .. Complaint 125 FTC. EXHIBIT D _JO''' ' ": ;0"'''' "'".".., . 4200 NORTH SERVICE ROAD ST. PETERS, MO, BUICK PONTIAC GMe: Tru 'i! i' fc-;" i 939-0800 800. 262-8425 SALE u SERVICE :-,"u HOURS: 5"'"'''' HOURS: ,,,' - L. ' Ii:'0''0 ir . $14 954 2!: $2'3:507 "u. $16,602 ,;dU"f $2,607 Stock'''''. ""'"v'J"" 51,259 5"," $4, 112 ,::1,$1399' ,::1, $17995' 695 'CE 395 ,CE PONTIAC. NO PAYMENTS Tll MARCH '9S" NO PAYMENTS Tll MARCH ' ... ,.. :: .. :. . ; :: , ,. ..; ,..,.. ,,,.: . ,,,. , ; ;;: . .., .,, / .. . ,.. .;\ ,./. .. ..,, .. ..... .. SUNTRUP BUICK-PONTIAC-GMC TRUCK, INC, ET AL. 101 Complaint EXHIBIT D '"om,.....",., ST. CHARLES ROCK ROAD ATI- BRIDGETDN' MD.

.':: 291-2334 800-831-6365rRUP HOURS: '" HOURS:'iJ :. Oleo C' : FOR -el~ 1!!gs 1995 PROBE " 94 ASPIRE .,.. m' ER\Q TO 6799 Choose FRO.. AI 795 'R'..""ST' RCo0510. 9595 (;HQ05EFROr. 1995 !.!! qG1 ;99S: !1ri9!r ,: ' I; , . c!o' D"; ., Din iI- SEDUI .

15E \/,,,, . -I::, =-Jl_, i:789s1 . ,, E:.fl\..,.,,,...,,, SFIREilIRDS! 00ilt: t ,.. "'C-'" ., 1;Ii;' Soo .;: ". ilfi ---'24 '219 c: 94CENTUAVS,..::__ BUICK 1: i\:.", ::!__"'N " 1 1800 :J .., '" v I"...z:;, M". 1117489 . OFFER!i'" ., 1U1/2TON . 1', .

.

.:. "?fir: ".ues"..' CUlCOEISKYUI .ff II, E?S' ..o:'b '213" --- :"'1 Eil'1!: ilw"' ANi SEDAN !!AW J'""Y fta..'! 'u'\_ ""ALL_WHo",5GIIC H"\..,... US PONTIAC 50mv -- 15. i:;: '284" &4SUNBIRDS!. " ,:::. PE .. SEDANfj'oi.l SEDAN ....... T\' C . ,"i,i, ;, J1T\", ,. g- CUSTOM 00 GALCUSTOU LIMITED ,,; $,,,. HOURS: . . CENTURV . 1HlOllS . ,.,. B i'JllllAY9. HVICE 95 .... 5 JI9 'SSKYA., 5lESABRE 11',11 '''Ill!111".MAKE , '249" SUNTRUP BUICK-PONTIAC-GMC TRUCK, INC, ET AL. 103 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge the respondents with violation of the Federal Trade Commission Act the Consumer Leasing Act and its implementing Regulation M, and the Truth in Lending Act and its implementing Regulation Z; and The respondents, their attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by the respondents that the law has been violated as alleged in such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true and waivers and other provisions as required by the Commission s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Acts and Regulations, and that a complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order: 1. Respondent Suntrup Buiek-Pontiae-GMC Truck, Inc. is a Delaware corporation with its principal offce or place of business at 4200 N. Service Road, Saint Peters, Missouri. 2. Respondent Suntrup Ford, Inc. is a Missouri corporation with its principal offce or place of business at 12750 Saint Charles Rock Road, Bridgeton, Missouri.

3. Thomas Suntrup is an offcer of the corporate respondents. His principal offices or places of business are the same as those of Suntrup Buiek-Pontiae-GMC Truck, Inc. and Suntrup Ford, Inc. Decision and Order 125 FTC. 4. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER DEFINITONS For the purposes of this order, the following definitions shall apply:

1. "Clearly and conspicuously shall mean as follows: a. In a television or video advertisement, the audio disclosure shall be delivered in a volume and cadence suffcient for an ordinar consumer to hear and comprehend it. The video disclosure shall be of a size and shade, and shall appear on the screen for a duration suffcient for an ordinary consumer to read and comprehend it. b. In a print advertisement, the disclosure shall be in a type size location, and in print that contrasts with the background against which it appears, suffcient for an ordinary consumer to notice, read and comprehend it.

e. In a radio advertisement, the disclosure shall be delivered in a volume and cadence suffcient for an ordinary consumer to hear and comprehend it.

Nothing contrary to, inconsistent with, or in mitigation of the disclosure shall be used in any advertisement. 2. "Equal prominence shall mean as follows: a. In a television or video advertisement, the video disclosure shall be presented in the same or similar format, including but not necessarily limited to type size, shade, contrast, duration, and placement. The audio disclosure shall be delivered in the same or similar manner, including but not necessarily limited to volume cadence, pace, and placement.

b. In a print advertisement, the disclosure shall be presented in the same or similar format, including but not necessarily limited to type size, shade, contrast, and placement.

c. In a radio advertisement, the disclosure shall be delivered in the same or similar manner, including but not necessarily limited to volume, cadence, pace, and placement.

SUNTRUP BUICK-PONTIAC-GMC TRUCK, INC., ET AL. 105 Decision and Order Nothing contrary to, inconsistent with, or in mitigation of the disclosure shall be used in any advertisement. 3. "Total amount due at lease inception shall mean the total amount of any initial payments required to be paid by the lessee on or before consummation of the lease or delivery of the vehicle whichever is later.

4. "Commerce shall mean as defined in Section 4 of the Federal Trade Commission Act, 15 U.S. C. 44.

5. Unless otherwise specified respondents shall mean Suntrup Buiek-Pontiae-GMC Truck, Inc. and Suntrp Ford, Inc., corporations their successors and assigns and their offcers; Thomas Suntrup, individually and as an offcer of the corporations; and each of the above s agents, representatives, and employees. It is ordered That respondents, directly or through any corporation, subsidiary, division, or any other device, in connection with any advertisement to promote, directly or indirectly, any consumer lease in or affecting commerce, as " advertisement" and consumer lease" are defined in Section 213.2 of Regulation M, 12 CFR 213. , as amended, shall not, in any manner, expressly or by implication:

A. Misrepresent the costs of leasing a vehicle, including but not necessarily limited to the total amount due at lease inception. B. State any amount due at lease inception (or that no such amount is required), except for the statement of a periodic payment unless the advertisement also states with equal prominence the total amount due at lease inception.

C. State the amount of any payment, the number of required payments, or that any or no downpayment or other payment is required at consummation of the lease unless all of the following items are disclosed, clearly and conspicuously, as required Regulation M, as amended:

(1) That the transaction advertised is a lease; (2) The total amount of any payment such as a security deposit or capitalized cost reduction required at the consummation of the lease or that no such payments are required;

Decision and Order 125F.TC. (3) The number, amounts, due dates or periods of scheduled payments, and the total of such payments under the lease; (4) A statement of whether or not the Jessee has the option to purchase the leased property and at what price and time (the method of determining the price may be substituted for disclosure of the price); and (5) A statement of the amount or method of determining the amount of any liabilities the lease imposes upon the lessee at the end of the term and a statement that the lessee shall be liable for the difference, if any, between the estimated value of the leased property and its realized value at the end of the lease term, if the lessee has such liability.

For all lease advertisements, respondents may comply with the requirements of this subparagraph by utilizing Section I 84(a) of the Consumer Leasing Act ("CLA"), 15 US.e. I 667e(a), as amended by Title II, Section 2605 of the Omnibus Consolidated Appropriations Act for Fiscal Year 1997, Pub. L. No. 104-208, 110 Stat. 3009, 3009- 473 (Sept. 30 1996) (to be codified at 15 U. C. 1667e(a))("Seetion 184(a) of the revised CLA"), as amended, or by utilizing Section 213.7(d) of revised Regulation M, 61 Fed. Reg. 52246 , 52261 (October 7 1996) and 62 Fed. Reg. 15364, 15368 (Apr. I , 1997) (to be codified at 12 CFR 213.7(d)) ("revised Regulation M" ), as amended. For radio lease advertisements, respondents may also comply with the requirements of this subparagraph by utilizing Section I 84(b) of the CLA, IS US.C. I 667e(b), as amended by Title , Section 2605 of the Omnibus Consolidated Appropriations Act for Fiscal Year 1997, Pub. L. No. 104-208, 110 Stat. 3009, 3009-473 (Sept. 30, 1996)(to be codified at IS US. e. 1667e(e))(" Seetion 184(e) of the revised CLA"), as amended, or by utilizing Section 213.7(f) of revised Regulation M (to be codified at 12 CFR 213 7(f)), as amended. For television lease advertisements, respondents may also comply with the requirements of this subparagraph by utilizing Section 213. 7(f) of revised Regulation M, as amended. D. Fail to comply in any other respect with Regulation M, 12 CFR 213 , as amended, and the CLA, IS U. e. 1667- 1667e, as amended. Respondents may comply with the requirements of this subparagraph by utilizing revised Regulation M, 61 Fed. Reg. 52246 (Oct. 7, 1996) and 62 Fed. Reg. 15364 (Apr. I , 1997) (to be codified at 12 CFR 213), as amended.

SUNTRUP BUICK-PONTIAC-GMC TRUCK, INC., ET AL. 107 Decision and Order II.

It is further ordered That respondents, directly or through any corporation, subsidiary, division, or any other device, in connection with any advertisement to promote, directly or indirectly, any extension of consumer credit in or affecting commerce, as advertisement" and "consumer credit" are defined in Section 226. of Regulation Z, 12 CFR 226. , as amended, shall not, in any manner, expressly or by implication:

A. State the amount or percentage of any downpayment, the number of payments or period of repayment, the amount of any payment, or the amount of any finance charge, without disclosing clearly and conspicuously all of the teils required by Section 144 of the Truth in Lending Act ("TILA"), 15 U.S, e. 1664, as amended, and Section 226,24(e) of Regulation Z, 12 CFR 226.24(c), as amended as more fully set out in Section 226.24(e) of the Federal Reserve Board' s Official Staff Commentar to Regulation Z, 12 CFR 226.24(e), as amended, as follows:

1. The amount or percentage of the downpayment; 2. The teils ofrepayment, including but not necessarily limited to the amount of any balloon payment; and 3. The annual percentage rate, using that teil or the abbreviation APR. " If the annual percentage rate may be increased after consummation of the credit transaction, that fact must also be disclosed.

B. State a rate of finance charge without stating the rate as an annual percentage rate" or the abbreviation "APR " using that teil as required by Section 144 of the TILA, 15 D. C. 1664, as amended and Section 226. 24(b) of Regulation Z, 12 CFR 226.24(b), as amended, as more fully set out in Section 226.24(b) of the Federal Reserve Board's Offcial Staff Commentary to Regulation Z, 12 CFR 226.24(b), as amended.

e. Fail to comply in any other respect with Regulation Z, 12 CFR 226, as amended, and the TILA, 15 U.S. e. 1601- 1667, as amended. It is further ordered That respondents Suntrup Buiek-Pontiac- GMC Truck, Inc. and Suntrup Ford, Inc., and their successors and Decision and Order 125 FTC. assigns, and respondent Thomas Suntrup shall, for five (5) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying all records that will demonstrate compliance with the requirements of this order. IV.

It is further ordered That respondents Suntrup Buiek-Pontiae- GMC Truck, Inc. and Suntrup Ford, Inc., and their successors and assigns, and respondent Thomas Suntrup shall deliver a copy of this order to all current and future principals, offcers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt ofthe order. Respondents shall deliver this order to such current personnel within thirt (30) days after the date of service of this order, and to such future personnel within thirty (30) days after the person assumes such position or responsibilities.

It is further ordered That respondents Suntrup Buiek-Pontiae- GMC Truck, Inc. and Suntrup Ford, Inc., and their successors and assigns, shall notify the Commission at least thirty (30) days prior to any change in the corporations that may affect compliance obligations arising under this order, including but not necessarily limited to a dissolution, assignent, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiar, parent, or affliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided however, that, with respect to any proposed change in the corporation about which respondents learn less than thirty (30) days prior to the date such action is to take place, respondents shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D. SUNTRUP BUICK-PONTIAC-GMC TRUCK, INC., ET AL. 109 Decision and Ordcr VI.

It is further ordered That respondent Thomas Suntrup, for a period of ten (10) years after the date of issuance of this order, shall notify the Commission of the discontinuance of his current business or employment, or of his affliation with any new business or employment involving the advertising and/or extension of a consumer lease " as that tenn is defined in the CLA and its implementing Regulation M, or the advertising and/or extension of consumer credit " as that tenn is defined in the TILA and its implementing Regulation Z. The notice shall include respondent' new business address and telephone number and a description of the nature of the business or employment and his duties and responsibilities. All notices required by this Par shall be sent by certified mail to the Associate Director, Division of Enforcement Bureau of Consumer Protection, Federal Trade Commission Washington, D.

VII.

It is further ordered That respondents Suntrup Buiek-Pontiae- GMC Truck, Inc. and Suntrup Ford, Inc., and their successors and assigns, and respondent Thomas Suntrup shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the maner and fonn in which it has complied with this order.

VIII.

This order will tenninate on Janumy 5 , 2018, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any Par in this order that tenninates in less than twenty (20) years;

B. This order s application to any respondent that is not named as a defendant in such complaint; and Decision and Order 125 F. C. This order if such complaint is filed after the order has terminated pursuant to this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been fied, except that the order will not terminate between the date such complaint is fied and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

Commissioner Thompson and Commissioner Swindle not paricipating.

LOU FUSZ AUTOMOTIVE NETWORK, INC., ET AL. 111 111 Complaint