Blog Enforcement Watch April 20, 2015

State Auto Dealer Settles Deceptive Advertising Claim

On April 20, 2015, the Tennessee Attorney General announced that it and the Tennessee Division of Consumer Affairs reached a settlement with a state auto dealer over allegations that the auto dealer violated the Tennessee Consumer Protection Act by mailing two false advertisements to consumers. The allegedly false advertisements purported to represent a non-existent lender called “CreditAble Auto Funding,” a “by military, for military” service offering loans to military servicemembers. As part of the settlement approved by a Tennessee state court, the auto dealer agreed to change its advertising practices, develop internal advertising policies and review processes, and pay a $50,000 civil penalty to the State of Tennessee.