80 FR 38687 - JS Autoworld, Inc.; Analysis of Proposed Consent Order To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 80, Issue 129 (July 7, 2015)

Page Range		38687-38688
FR Document		2015-16617
The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order--embodied in the consent agreement--that would settle these allegations.
Federal Register, Volume 80 Issue 129 (Tuesday, July 7, 2015)
[Federal Register Volume 80, Number 129 (Tuesday, July 7, 2015)]
[Notices]
[Pages 38687-38688]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16617]


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FEDERAL TRADE COMMISSION

[File No. 152 3069]


JS Autoworld, Inc.; Analysis of Proposed Consent Order To Aid 
Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices. The attached Analysis to Aid Public Comment describes both 
the allegations in the draft complaint and the terms of the consent 
order--embodied in the consent agreement--that would settle these 
allegations.

DATES: Comments must be received on or before July 29, 2015.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/planetnissanconsent online or on paper, 
by following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``JS Autoworld, Inc.--
Consent Agreement; File No. 152-3069'' on your comment and file your 
comment online at https://ftcpublic.commentworks.com/ftc/planetnissanconsent by following the instructions on the web-based 
form. If you prefer to file your comment on paper, write ``JS 
Autoworld, Inc.--Consent Agreement; File No. 152-3069'' on your comment 
and on the envelope, and mail your comment to the following address: 
Federal Trade Commission, Office of the Secretary, 600 Pennsylvania 
Avenue NW., Suite CC-5610 (Annex D), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610 (Annex D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Yan Fang, FTC Western Region, (415-
848-5150), 901 Market Street, Suite 570, San Francisco, CA 94103.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement, and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
from the FTC Home Page (for June 29, 2015), on the World Wide Web at: 
http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before July 29, 2015. 
Write ``JS Autoworld, Inc.--Consent Agreement; File No. 152-3069'' on 
your comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the 
Commission tries to remove individuals' home contact information from 
comments before placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed

[[Page 38688]]

in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 
4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do not include 
competitively sensitive information such as costs, sales statistics, 
inventories, formulas, patterns, devices, manufacturing processes, or 
customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
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    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/planetnissanconsent by following the instructions on the web-based 
form. If this Notice appears at http://www.regulations.gov/#!home, you 
also may file a comment through that Web site.
    If you file your comment on paper, write ``JS Autoworld, Inc.--
Consent Agreement; File No. 152-3069'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. The 
Commission will consider all timely and responsive public comments that 
it receives on or before July 29, 2015. You can find more information, 
including routine uses permitted by the Privacy Act, in the 
Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement containing consent 
order from JS Autoworld, Inc., also doing business as Planet Nissan. 
The proposed consent order has been placed on the public record for 
thirty (30) days for receipt of comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty (30) days, the Commission will again review the 
agreement and the comments received, and will decide whether it should 
withdraw from the agreement and take appropriate action or make final 
the agreement's proposed order.
    The respondent is a motor vehicle dealer. According to the FTC's 
complaint, the respondent has misrepresented in certain advertisements: 
(1) vehicle purchase prices; (2) that advertised monthly payment 
amounts were for vehicle purchases, not leases; and (3) that consumers 
can pay $0 at signing to obtain vehicles shown in the advertisements 
for the advertised monthly amount. The complaint alleges therefore that 
the representations are false or misleading in violation of Section 5 
of the FTC Act.
    In addition, the complaint alleges that the respondent violated the 
Consumer Leasing Act (``CLA'') and Regulation M for failing to disclose 
or to disclose clearly and conspicuously certain costs and terms when 
advertising vehicles for lease.
    The FTC's complaint also alleges that the respondent violated the 
Truth in Lending Act (``TILA'') and Regulation Z by failing to disclose 
or to disclose clearly and conspicuously certain costs and terms when 
advertising credit.
    The proposed consent order contains provisions designed to prevent 
respondent from engaging in similar acts or practices in the future. 
Part I.A of the order prohibits respondent from misrepresenting the 
cost of: (1) purchasing a vehicle with financing, including but not 
necessarily limited to, the amount or percentage of the downpayment, 
the number of payments or period of repayment, the amount of any 
payment, the annual percentage rate or any other finance rate, and the 
repayment obligation over the full term of the loan, including any 
balloon payment; or (2) leasing a vehicle, including but not 
necessarily limited to, the total amount due at lease inception, the 
downpayment, amount down, acquisition fee, capitalized cost reduction, 
any other amount required to be paid at lease inception, and the 
amounts of all monthly or other periodic payments. Part I.B prohibits 
the respondent from misrepresenting any other material fact about the 
price, sale, financing, or leasing of any vehicle.
    Part II of the proposed order addresses the CLA allegations. Part 
II.A prohibits respondent from stating the amount of any payment or 
that any or no initial payment is required at lease inception without 
disclosing clearly and conspicuously: (1) that the transaction 
advertised is a lease; (2) the total amount due at lease signing or 
delivery; (3) whether or not a security deposit is required; (4) the 
number, amounts, and timing of scheduled payments; and (5) that an 
extra charge may be imposed at the end of the lease term. Part II.B 
prohibits the respondent from violating any provision of the CLA or 
Regulation M.
    Part III of the proposed order addresses the TILA allegations. Part 
III.A requires the respondent to make all of the disclosures required 
by TILA and Regulation Z when any of its advertisements state relevant 
triggering terms. Part III.B requires that if any finance charge is 
advertised, the rate be stated as an ``annual percentage rate'' using 
that term or the abbreviation ``APR.'' In addition, Part III.C 
prohibits the respondent from failing to comply in any respect with 
TILA and Regulation Z.
    Part IV of the proposed order requires respondent to keep copies of 
relevant advertisements and materials substantiating claims made in the 
advertisements. Part V requires the respondent provide copies of the 
order to certain of its personnel. Part VI requires notification to the 
Commission regarding changes in corporate structure that might affect 
compliance obligations under the order. Part VII requires respondent to 
file compliance reports with the Commission. Finally, Part VIII is a 
provision ``sunsetting'' the order after twenty (20) years, with 
certain exceptions.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to constitute an official 
interpretation of the complaint or proposed order, or to modify the 
proposed order's terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2015-16617 Filed 7-6-15; 8:45 am]
BILLING CODE 6750-01-P
38688 Federal Register / Vol. 80, No. 129 / Tuesday, July 7, 2015 / Notices

in Section 6(f) of the FTC Act, 15 U.S.C. Commission’s privacy policy, at http:// the downpayment, amount down,
46(f), and FTC Rule 4.10(a)(2), 16 CFR www.ftc.gov/ftc/privacy.htm. acquisition fee, capitalized cost
4.10(a)(2). In particular, do not include reduction, any other amount required to
Analysis of Proposed Consent Order To
competitively sensitive information be paid at lease inception, and the
Aid Public Comment
such as costs, sales statistics, amounts of all monthly or other
inventories, formulas, patterns, devices, The Federal Trade Commission periodic payments. Part I.B prohibits the
manufacturing processes, or customer (‘‘FTC’’ or ‘‘Commission’’) has accepted, respondent from misrepresenting any
names. subject to final approval, an agreement other material fact about the price, sale,
If you want the Commission to give containing consent order from JS financing, or leasing of any vehicle.
your comment confidential treatment, Autoworld, Inc., also doing business as Part II of the proposed order addresses
you must file it in paper form, with a Planet Nissan. The proposed consent the CLA allegations. Part II.A prohibits
request for confidential treatment, and order has been placed on the public respondent from stating the amount of
you have to follow the procedure record for thirty (30) days for receipt of any payment or that any or no initial
explained in FTC Rule 4.9(c), 16 CFR comments by interested persons. payment is required at lease inception
4.9(c).1 Your comment will be kept Comments received during this period without disclosing clearly and
confidential only if the FTC General will become part of the public record. conspicuously: (1) that the transaction
Counsel, in his or her sole discretion, After thirty (30) days, the Commission advertised is a lease; (2) the total
grants your request in accordance with will again review the agreement and the amount due at lease signing or delivery;
the law and the public interest. comments received, and will decide (3) whether or not a security deposit is
Postal mail addressed to the whether it should withdraw from the required; (4) the number, amounts, and
Commission is subject to delay due to agreement and take appropriate action timing of scheduled payments; and (5)
heightened security screening. As a or make final the agreement’s proposed that an extra charge may be imposed at
result, we encourage you to submit your order. the end of the lease term. Part II.B
comments online. To make sure that the The respondent is a motor vehicle prohibits the respondent from violating
Commission considers your online dealer. According to the FTC’s any provision of the CLA or Regulation
comment, you must file it at https:// complaint, the respondent has M.
ftcpublic.commentworks.com/ftc/ misrepresented in certain Part III of the proposed order
planetnissanconsent by following the advertisements: (1) vehicle purchase addresses the TILA allegations. Part
instructions on the web-based form. If prices; (2) that advertised monthly III.A requires the respondent to make all
this Notice appears at http:// payment amounts were for vehicle of the disclosures required by TILA and
www.regulations.gov/#!home, you also purchases, not leases; and (3) that Regulation Z when any of its
may file a comment through that Web consumers can pay $0 at signing to advertisements state relevant triggering
site. obtain vehicles shown in the terms. Part III.B requires that if any
If you file your comment on paper, advertisements for the advertised finance charge is advertised, the rate be
write ‘‘JS Autoworld, Inc.—Consent monthly amount. The complaint alleges stated as an ‘‘annual percentage rate’’
Agreement; File No. 152–3069’’ on your therefore that the representations are using that term or the abbreviation
comment and on the envelope, and mail false or misleading in violation of ‘‘APR.’’ In addition, Part III.C prohibits
your comment to the following address: Section 5 of the FTC Act. the respondent from failing to comply in
Federal Trade Commission, Office of the In addition, the complaint alleges that any respect with TILA and Regulation
Secretary, 600 Pennsylvania Avenue the respondent violated the Consumer Z.
NW., Suite CC–5610 (Annex D), Leasing Act (‘‘CLA’’) and Regulation M Part IV of the proposed order requires
Washington, DC 20580, or deliver your for failing to disclose or to disclose respondent to keep copies of relevant
comment to the following address: clearly and conspicuously certain costs advertisements and materials
Federal Trade Commission, Office of the and terms when advertising vehicles for substantiating claims made in the
Secretary, Constitution Center, 400 7th lease. advertisements. Part V requires the
Street SW., 5th Floor, Suite 5610 The FTC’s complaint also alleges that respondent provide copies of the order
(Annex D), Washington, DC 20024. If the respondent violated the Truth in to certain of its personnel. Part VI
possible, submit your paper comment to Lending Act (‘‘TILA’’) and Regulation Z requires notification to the Commission
the Commission by courier or overnight by failing to disclose or to disclose regarding changes in corporate structure
service. clearly and conspicuously certain costs that might affect compliance obligations
Visit the Commission Web site at and terms when advertising credit. under the order. Part VII requires
http://www.ftc.gov to read this Notice The proposed consent order contains
respondent to file compliance reports
and the news release describing it. The provisions designed to prevent
with the Commission. Finally, Part VIII
FTC Act and other laws that the respondent from engaging in similar
is a provision ‘‘sunsetting’’ the order
Commission administers permit the acts or practices in the future. Part I.A
after twenty (20) years, with certain
collection of public comments to of the order prohibits respondent from
exceptions.
consider and use in this proceeding as misrepresenting the cost of: (1) The purpose of this analysis is to
appropriate. The Commission will purchasing a vehicle with financing, facilitate public comment on the
consider all timely and responsive including but not necessarily limited to, proposed order, and it is not intended
public comments that it receives on or the amount or percentage of the to constitute an official interpretation of
before July 29, 2015. You can find more downpayment, the number of payments the complaint or proposed order, or to
information, including routine uses or period of repayment, the amount of modify the proposed order’s terms in
tkelley on DSK3SPTVN1PROD with NOTICES

permitted by the Privacy Act, in the any payment, the annual percentage rate any way.
or any other finance rate, and the
1 In particular, the written request for confidential repayment obligation over the full term By direction of the Commission.
treatment that accompanies the comment must of the loan, including any balloon Donald S. Clark,
include the factual and legal basis for the request, Secretary.
and must identify the specific portions of the
payment; or (2) leasing a vehicle,
comment to be withheld from the public record. See including but not necessarily limited to, [FR Doc. 2015–16617 Filed 7–6–15; 8:45 am]
FTC Rule 4.9(c), 16 CFR 4.9(c). the total amount due at lease inception, BILLING CODE 6750–01–P

VerDate Sep<11>2014 20:31 Jul 06, 2015 Jkt 235001 PO 00000 Frm 00028 Fmt 4703 Sfmt 9990 E:\FR\FM\07JYN1.SGM 07JYN1
Document Created: 2015-12-15 13:27:31
Document Modified: 2015-12-15 13:27:31
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Proposed Consent Agreement.
Dates		Comments must be received on or before July 29, 2015.
Contact		Yan Fang, FTC Western Region, (415- 848-5150), 901 Market Street, Suite 570, San Francisco, CA 94103.
FR Citation		80 FR 38687