Tony Walker 49up

In 1996, five automakers were charged by the Federal Trade Commission with using deceptive advertising to market leases. General Motors, Mitsubishi Motor Sales of America, Mazda Motor of America, American Isuzu Motors, and American Honda Motor Co. were all accused of not providing proper disclosure in their television ads, making it difficult for consumers to determine the actual costs involved in the advertised deals.
For the most part, the companies’ advertisements had provided disclosure, but they were not in readable type. Mazda, Honda, and Mitsubishi advertised “zero-down” leases, using fine-print disclaimers that mentioned up- front costs that customers were required to pay. Ads run by General Motors and Mitsubishi had final balloon payment amounts in unreadable type.
Similar charges had been filed against the five companies by attorneys general from 23 states. Initially, four of the companies agreed to settle the charges by changing their advertising practices. Mazda did not agree to settle until after 14 states filed lawsuits.