Lou Fusz Automotive Network, Inc

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IN THE MA TIER OF LOU FUSZ AUTOMOTIVE NETWORK, INC., ET AL. CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE CONSUMER LEASING ACT, THE TRUTH IN LENDING ACT AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3780. Complaint, Jan. 1998--Decision, Jan. , 1998 This consent order prohibits, among other things, the St. Louis Missouri-area automobile dealership and its officer from omitting or burying key cost infonnation in small, and at times, umeadable 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 infonnation 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: E. Perry Johnson, Bryan Cave, LLP St. Louis, MO. and Elaine Foreman, Bryan Cave, LLP Washington COMPLAINT The Federal Trade Commission, having reason to believe that Lou Fusz Automotive Network, Inc., a corporation, and Louis 1. Fusz, Jr individually and as an offcer of the corporation ("respondents" or Lou Fusz ), have violated the provisions of the Federal Trade Commission Act, 15 U. e. 45- , as amended, the Consumer Leasing Act, 15 U. e. 1667- 1667e, as amended, and its implementing Regulation M, 12 CFR 213, 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 publie interest, alleges:

1. Respondent Lou Fusz Automotive Network, Inc. is a Missouri corporation with its principal office or place of business at 925 North Lindbergh Blvd., St. Louis, Missouri. Respondent offers automobiles for sale or lease to consumers.

Complaint 125 FTC. 2. Respondent Louis J. Fusz, Jr. is an offcer of the corporate respondent. Individually or in concert with others, he formulates directs, or controls the policies, acts, or practices of the corporation including the acts or practices alleged in this complaint. His principal offce or place of business is the same as that of Lou Fusz Automotive Network, Inc.

3. Respondents have disseminated advertisements to the public that promote consumer leases, as the terms "advertisement" and consumer lease" arc defined in Section 213.2 of Regulation M, 12 CFR 213.2, as amended.

4. Respondents have disseminated advertisements to the public that promote credit sales and other extensions of closed-end credit in consumer credit transactions, as the terms "advertisement credit sale " and "consumer credit" are defined in Section 226.2 of Regulation Z, 12 CFR 226. , as amended. 5. The acts and practices of respondents 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. C. 44. LEASE ADVERTISING 6. Respondents have disseminated or have caused to disseminated consumer lease advertisements ("lease advertisements for automobiles in the print media, including but not necessarily limited to the attached Exhibits A through F. These lease advertisements contain the following statements: A. "0 DOWN PLt:S NO PA YMENT TIL SPRDG -- 1995 ALTIMA GXE . LEASE FOR ONLY $217* permonth-- 1994.5 SENTRA LE. . (sic) LEASE FOR ONLY $186* PER MONTH"

(A fine print statement at the bottom of the ad states, "*36 month, 10% down cash or trade. 5.97% Mo. tax, personal propert tax included. Only to qualified buyers. ) (Exhibit A) B. (Sunfire Coupe Offerj: "Available Only at LOt: FUSZ PONTIAC -- 0 DOWN:\O SEC. DEPOSIT Sunfire Leases start at $219. 12* per mo. (A fine print statement at the bottom of the ad states, "*39 mo. lease, 36 000 mi. Stock #75015. First month payment taxes & lease fee not included. lGrand Prix Offerj: "Lease: $233/mo.

LA fine print statement at the bottom of the ad states "36 month closed end lease. 1 0% down cash or trade. First month's payment and security deposit due at time of lease. Taxes and fees not included. 12 000 mi. per yeai. ) (Exhibit B) C. " 1995 TOYOTA CAMRY LE LEASE FROM $269* per mo. LA file print statement at the bottom oftbe ad states, "*36 mo. lease, 12 000 miles per year, all taxes included. "J (Exhibit C) , LOU FUSZ AUTOMOTIVE NETWORK me. ET AL. 113 III Complaint D. "LEASE: $159/mo. '95 Mitsubishi Galant ES" (A fme print statement in the center of the ad states 30 month closed end lease, 10% down cash or trade. 1 st month's payment, refundable security deposit and license fees due at time of lease. 10 000 miles per year. Residual value $11 644. Taxes excluded. J (Exhibit D) E. " '95 Grand Am. . . $234* Per Month 36 Month I Payment Lease (A fine print statement at the bottom of the ad states, "*All payments due at delivery, includes SIOOO customer cash & $1000 cap. reduction. Taxes not included. "J (Exhibit E) F. " 1995 NISSAN PA THFINDER . . . $279 per mo. (A fme print statement at the bottom of the ad states, "**12 mo. lease Pathfmder 24 mo. Altima, 36 mo. 240 SX & 3002X. 10% down cash or ttade. Based on 975% MO tax, 15 000 mi per year. J (Exhibit F) FEDERAL TRADE COMMISSro:" ACT VIOLATIONS COUNT 1: MISREPRESENTA Tron OF INCEPTION FEES 7. In lease advertisements, including but not necessarily limited to Exhibit A and the Sunfire Coupe offer in Exhibit B, respondents have represented, expressly or by implication, that the amount stated as "down" is the total amount consumers must pay at lease inception to lease the advertised vehicles.

8. In truth and in fact, the amount stated as "down" in respondents' lease advertisements is not the total amount consumers must pay at lease inception to lease the advertised vehicles. 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, lease fee, first month' s payment, and taxes. Therefore, respondents' representation as alleged in paragraph seven was, and is, false or misleading.

9. 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.S. e. 45(a).

COUNT II: FAILURE TO DISCLOSE ADEQUATELY INCEPTION FEES 10. In lease advertisements, including but not necessarily limited to Exhibits A through F, respondents have represented, expressly or by implication, that consumers can Jease the advertised vehicles at the terms prominently stated in the advertisements, including but not necessarily limited to the monthly payment amount and/or amount stated as "down.

11. These lease advertisements do not adequately disclose additional terms pertaining to obligations at lease inception, including Complaint 125 FTC. but not necessarily limited to one or more of the following charges: a required downpayment, security deposit, lease fee, first month' payment, and taxes.

12. These additional terms 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 terms, in light ofthe representation made was, and is, a deceptive practice.

13. 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.S. e. 45(a).

COUNTIll: MISREPRESENTATION OF LEASE TERMS ACTUALLY A V AILABLE 14. In lease advertisements, including but not necessarily limited to Exhibit A, respondents have represented, expressly or by implication, that consumers can lease the advertised vehicles at the advertised terms, including but not limited to the monthly payment amount and amount stated as "down.

15. In truth and in fact, respondents have not offered the advertised vehicles at the advertised lease terms. Therefore respondents' representation as alleged in paragraph fourtcen was, and , false or misleading.

16. 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).

COU:T IV: MISREPRESE:\T A TIOI\ OF O:\E P A YME:\T LEASE PLANS 17. In advertisements for Lou Fusz s "one payment" lease plan including but not necessarily limited to Exhibit E, respondents have represented, expressly or by implication, that consumers can lease the advertised vehicles by making equal monthly payments for a specified lease term.

18. In truth and in fact, under Lou Fusz s "one payment" lease plan, consumers must pay all lease payments at lease signing. Therefore, respondents ' representation as alleged in paragraph seventeen was, and is, false or misleading. 19. 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.S. C. 45(a).

LOU FUSZ AUTOMOTIVE NETWORK, INC., ET AL. 115 111 Complaint CONSGMER LEASING ACT AND REGULATION M VIOLATIONS COUNT V: FAILURE TO DISCLOSE REQUIRED INFORMATION 20. In lease advertisements, including but not necessarily limited to Exhibits A through F, respondents have stated a monthly payment amount, the number of required payments, and/or an amount "down. 21. These lease advertisements have failed to disclose the following items of information 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 propert and at what price and time or, in lieu of disclosure of the price, the method of determining the purchaseoption 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.

22. Respondents' practices have violated Section 184 of the Consumer Leasing Act, 15 U. e. l667c, and Section 213.5 of Regulation M, 12 CFR 2l3.5(e).

COUNT VI: F Allure TO MAKE ADVERTISED TERVIS USUALLY AND CUSTOMARILY A V AILABLE 23. In lease advertisements, including but not necessarily limited to Exhibit A , respondents have represented, expressly or by implication, that consumers can lease the advertised vehicles at the advertised terms, including but not limited to the monthly payment amount and amount stated as "down.

24. Respondents have not usually and customarily offered the advertised vehicles at the advertised lease terms. 25. Respondents' practices have violated Section 213. 5(a) of Regulation M, 12 CFR 2135(a).

CREDIT ADVERTISING 26. 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 Exhibit F. These advertisements contain the following statements:

Complaint 125F.TC. 1995 NISSAN QUEST 1.9%* APR FINANCING"

LA fme print statement at the bottom of the ad states, "'To qualified buyers, 24 mo. term, special rates on 24, 36 and 48 mo. ) (Exhibit F) TRUTH IN LENDING ACT AND REGULA TIOr- Z VIOLATIONS COUNT VII: FAILURE TO DISCLOSE REQUIRED INFORMA TION 27. In credit advertisements, including but not necessarily limited to Exhibit F, respondents have stated the number of payments or period of repayment as terms for financing the purchase of the advertised vehicles.

28. These advertisements have failed to disclose the following items of information required by Regulation Z: the amount or percentage of the downpayment and the monthly payment amount. 29. Respondents' practices have violated Section 144 ofthe TILA 15 U.se. 1664, and Section 226.24(e) of Regulation Z, 12 CFR 226.24(c).

Commissioner Thompson and Commissioner Swindle not participating.

: , , . .. , , . LOU FUSZ AUTOMOTIVE NETWORK, INC., ET AL. 117 111 Complaint EXHIBIT A Lou 'us z E;:h t A limited Edition! Power LEASE FOR ONLY windowsand Locks, AMI per FM Cassette, Air month ConditIning, Cruise, Fold Down Rear Seat $18 1995 NISSAN MAXIMA 190 H eww, AZCodrtnlnQ. Pc.. WIMows LQC . AM!FM C "I. Tilt W ell. Crulll Co"'",,.. ,. Mo, ,- Starting From J!t7 ""'I '5: S19 995* 36 mont, 10", oown casn or Ira06. 5.97" Mo, QB'5Ql'al propetr I.. Inc uM". OJ'J!O Qualjhec ouye'! , i 34DD Lindbergh & Olive Complaint EXHIBIT B Lou Fusz Come See the All-New ‘95 Sunfire? | Over 20 to choose from— hurry infor the best selection! Available Only At LOU FUSZ PONTIAC 0 DOWN NO SEC. DEPOSIT nfire Leases start at 95 Sunfire Coupe ABS Brakes, Dual Air Bags, AM/FM Cassette (139 mo. leare, 36,000 mi, ‘Stock #75015. First month payment stoxes & leave fee not included.

#35050 “95 Grand Prix Dual air bags. AM/FM stereo. Power locks and windows. Much morel 36 month closed end lease. 10% down cash or + te. First month’s ond security deposit due ot time of lease. Taxes ond not included. 12,000 mi. per yeo Lou Fusz [° [1 F/:

Lindbergh & Olive * 994-1500 LOU FUSZ AUTOMOTIVE NETWORK, INC., ET AL. 119 111 Complaint EXHIBIT C .. .....__. $ , .. ..._,.$ Complaint 125 F.TC. EXHIBIT D ..r.'- 11_"'18 1!_f.Io .,-"''' 11_"'" L.ou ,..u :: !o 0 UTMOTIV NETORK"

St. Loul.' Lorg." Deal.,1 . IIIIYII. . Larg." Buick De.I.,1 tM."" $30,72. 9. Mf.. ""1 Oal... II Air, CX air bo, AMfM CQ. Paw windo71o/mirT. Cni.. conll. r.1twh. Muc mol --"'-'I1-"".-"-' "1 AV1. ----",-_"'."""_'0 10 __11'_1_- : :,;:;. ;;,; ! ;; ;; :., _. ;; , . j,.... LOU FUSZ AUTOMOTIVE NETWORK me. ET AL. 121 111 Complaint EXHIBIT E '"U S..boi.: .

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6 Cyl" Air. AM/FM Cassette. 4 Spd., Auto., Air, Cruise, AMIFM Keyless Entr. Custom Interior. J. Cruise, ASS Brakes. Air Bag, Radio System Wit Cloc &. Cas- Ute! V-6.4 SOd.. Auto.. Alum. Alley 4i . Intermittent, .4 Spd. Auto. sette. Power Doo Locs. Power Spoiler Wh&eS,iI 16" Touring Tires, - Wipers" Auto Door locks. Windows. Efec Rear Window. D&- Ilium. Entr System, AM/FM Cas- Child Safety Locks, Power fogqer, 7 Passenger Seanng, Power sene. POWIt Windows, Power Mlr. Windows iH:!gOoor, AemoleKeylessEntr lors, Power Deor Locks, POwer 1 , Plymenl 1 Plymenl LII" P!m.nl A"O",,,,,,,..!O--",,.234 """"".. S100 287 ov.",m",""'"I100".. f.... ';,= ;:00L....:. S'OO T....""t,"" ' OO''. L"'",''''', 'LOt/Fun LINDBERGH I OLIVE 994- 15 0 0 . . . . ._ ,,, Complaint 125 F.Te. EXHIBIT F I, 'PQ",..LcaI. AM/FMCu_, CNi"Irm Gcev"'IePadoag 995.

279= '-25;1'68 41'68 11,00'0 LOU FUSZ AUTOMOTIVE NETWORK, INC. , ET AL. 123 111 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 Jaw 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 Lou Fusz Automotive Network, Inc. is a Missouri corporation with its principal offce or place of business at 925 North Lindbergh Blvd., St. Louis, Missouri.

2. Respondent Louis 1. Fusz, Jr. is an offcer of the corporate respondent. His principal offce or place of business is the same as that of Lou Fusz Automotive Network, Inc. 3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and ofthe respondents, and the proceeding is in the public intercst.

Decision and Order J 25 FTC. ORDER DEFINITIONS For the purposes of this order, the following definitions shall apply:

I. 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 ordinary 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 fonnat, 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 fonnat, including but not necessarily limited to type size, shade, contrast, and placement.

e. 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.

Nothing contrary to, inconsistent with, or in mitigation of the disclosure shall be used in any advertisement. LOU FUSZ AUTOMOTIVE NETWORK, INC., ET AL 125 III Decision and Order 3. "One payment lease shall mean a lease transaction where all or substantially all payments due under the lease contract are to be paid at lease inception.

4. "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.

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

6. Unless otherwise specified respondents shall mean Lou Fusz Automotive Network, Inc., a corporation, its successors and assigns and its officers; and Louis J. Fusz, Jr, individually and as an offcer of the corporation; 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 maner, 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.

e. Misrepresent the type of the transaction advertised, including but not necessarily limited to the fact that the offer is for a one payment lease.

D. State that a specific lease of any vehicle at specific amounts or terms is available unless respondents usually and customarily lease or will lease such property at those amounts or terms. E. 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 Decision and Order 125 F. 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;

(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 lessee has the option to purchase the leased property and at what price and time (the method of detennining the price may be substituted for disclosure of the price); and (5) A statement of the amount or method of detennining the amount of any liabilities the lease imposes upon the lessee at the end of the tenn 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 tenn, if the lessee has such liability.

For all lease advertisements, respondents may comply with the requirements of this subparagraph by utilizing Section l84(a) of the Consumer Leasing Act ("CLA"), 15 U.S.e. 1 667e(a), 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 15 U.S. e. l667e(a))(" Seetion l84(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. 1 , 1997) (to asbe codified at 12 CFR 213.7(d)) ("revised Regulation M"), amended. For radio lease advertisements, respondents may also comply with the requirements of this subparagraph by utilizing Section 1 84(b) of the CLA, 15 U.S.C. 1 667e(b), as amended by Title Section 2605 of the Omnbus 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.S. e. 1667e(e))(" Seetion 184( c) of the revised CLA"), as amended, or by utilizing Section 2l3.7(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. LOU FUSZ AUTOMOTIVE NETWORK, INC. , ET AL. 127 III Decision and Order F. Fail to comply in any other respect with Regulation M, 12 CFR 213 , as amended, and the CLA, 15 U.S. e. 1667- 1667e, as amended. Respondents may comply with the requirements ofthis subparagraph regarding Regulation M by utilizing revised Regulation M, 61 Fed. Reg. 52246 (Oct. 7, 1996) and 62 Fed. Reg. 15364 (Apr. 1 , 1997) (to be codified at 12 CFR 213), as amended.

II.

It is further ordered That respondents, directly or through any corporation, subsidiar, 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 226.2 ofReguJation 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 ehargc, without disclosing clearly and conspicuously all of the terms required by Section 144 of the Truth in Lending Act ("TILA"), 15 U. e. 1664, as amended, and Section 226.24(e) of Regulation Z, 12 CFR 226.24(e), as amended as more fully set out in Section 226.24(e) of the Federal Reserve Board' s Offcial Staff Commentary to Regulation Z, 12 CFR 226.24(e), as amended, as follows:

I. The amount or percentage of the downpayment; 2. The tenns of repayment; and 3. The annual percentage rate, using that term 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. Fail to comply in any other respect with Regulation Z, 12 CFR 226, as amended, and the TILA, 15 C, e. 1601- 1667, as amended. It is further ordered That respondent Lou Fusz Automotive Network, Inc., and its successors and assigns, and respondent Louis 1. Fusz, Jr. shall, for five (5) years after the last date of dissemination Decision and Order 125 FTC. 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 wil demonstrate compliance with the requirements of this order.

IV.

It is further ordered That respondent Lou Fusz Automotive Network, Inc., and its successors and assigns, and respondent Louis 1. Fusz, Jr. shall deliver a copy of this order to all eUlTent and future principals, offcers, directors, and managers, and to all eUlTent 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 of the order. Respondents shall deliver this order to such CUlTent personnel within thirty (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 respondent Lou Fusz Automotive Network, Ine" and its successors and assigns, shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not necessarily limited to a dissolution assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affliate that engages in any acts or practices subject to this order; the proposed filing of a bankptcy petition; or a change in the corporate name or address. Provided, however, that with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent 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.

LOU FUSZ AUTOMOTIVE NETWORK, INe., ET AL. 129 111 Decision and Order VI.

It is further ordered That respondent Louis J. Fusz, Jr., for a period of ten (10) years after the date of issuance ofthis order, shah 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 term is defined in the CLA and its implementing Regulation M, or the advertising and/or extension of consumer credit " as that term is defined in the TILA and its implementing Regulation Z. The notice shah 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 Part 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 respondent Lou Fusz Automotive Network, Inc. , and its successors and assigns, and respondent Louis J. Fusz, Jr. 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 manner and form in which they have complied with this order.

VII This order will terminate on January 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 Part in this order that terminates 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. e. This order if such complaint is filed after the order has tenninated pursuant to this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that the respondents 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 tenninate according to this Part as though the complaint had never been filed, except that the order wil not terminate between the date such complaint is filed and the later ofthe 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.

MONTEDISON S. , ET AL. 131 131 Modifying Order