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Budget Car & Truck Sales has settle a lawsuit over deceptive advertising with the Arizona attorney general for $125,000. Certain restrictions will be imposed on Budget's advertisement practices as a condition of the settlement.
The attorney general has filed suits against several car dealerships over similar practices.
The Suit
According to this most recent lawsuit, from 2003 to 2005, Budget placed ads claiming to be public notices declaring that the company is conducting a “nationwide rental car disposal sale” because of “a decline in the national tourism industry,” which doesn't actually exist.
“Somebody reading these ads would not know that these statements, whether they're true or not,” said assistant attorney general in the consumer protection and advocacy sector, Vince Rabago.
The suit further claims that Budget was deceptive in comparing the sale prices of its new cars with the Manufacturer's Suggested Retail Price (MSRP) for new cars, which made the advertised savings seem very large.
“There is no MSRP for the current value of a used vehicle,” Rabago said.
Investigators were also suspicious of the claims that the country was experiencing a national decline in the tourism industry, said Rabago.
Settlement Terms
Budget will have to pay $125,000. The money will go to fund consumer fraud education, and to pay for investigative and legal fees.
Under the terms of the settlement, Budget can no longer:
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