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LEGAL ISSUES

leges the dealership unfairly discriminates "This practice also could consumers.” As a result, even in states such
against Hispanic customers. as Florida, which does not explicitly pro-
invite scrutiny from the FTC hibit sales above the advertised price, the
Nowhere Is Safe and Department of Justice state UDAP statute could support lawsuits
Even in states that do not explicitly pro- (for dealers engaged in or prosecutions against dealers who sell
hibit sales of vehicles for more than the indirect vehicle financing) above the advertised price.
advertised price, state UDAP statutes may
prohibit the practice. For example, Ten- and the Consumer Financial This article has focused on a single sales
nessee’s UDAP statute includes “advertis- Protection Bureau (for tactic, but the lesson applies broadly. If a
ing goods or services with intent not to sell dealers who hold their sales tactic appears too good to be true,
them as advertised” as an unfair or decep- there is a good chance a prosecutor (and,
tive practice. In these cases, the prosecutor own paper)." ultimately, a judge) will eventually agree.
may allege that the sales tactic shows that Many states have rules that prohibit spe-
the dealership advertises a base price with fair or deceptive acts or practices in the cific practices, but even if you do not live
the intent to sell the vehicle at a higher conduct of any trade or commerce” to be in one, your sales tactics could neverthe-
price, in violation of this rule. unlawful. less be deemed unfair or deceptive. n

Other states have a UDAP statute that In interpreting the terms “unfair” and “de- Christian Scali and Monica Baumann are
more generally prohibits unfair or decep- ceptive,” Florida courts, for example, have attorneys with The Scali Law Firm, recog-
tive acts or practices. These often track adopted and applied FTC case law to find nized by the Daily Journal as California’s
the broad language of the FTC Act, which a practice is unfair “if it offends public pol- top boutique automotive law firm. Reach
declares “unfair methods of competition, icy and is immoral, unethical, oppressive, them at christian.scali@bobit.com and
unconscionable acts or practices, and un- unscrupulous or substantially injurious to monica.baumann@bobit.com.

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GIADA Independent Auto Dealer JUNE 2017 | 13