80 FR 38689 - TC Dealership, L.P.; Analysis of Proposed Consent Order To Aid Public Comment

FEDERAL TRADE COMMISSION

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

Page Range		38689-38690
FR Document		2015-16618
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 38689-38690]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16618]



[[Page 38689]]

-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

[File No. 152 3096]


TC Dealership, L.P.; Analysis of Proposed Consent Order To Aid 
Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

-----------------------------------------------------------------------

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/planethyundaiconsent online or on paper, 
by following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``TC Dealership, L.P.--
Consent Agreement; File No. 152-3096'' on your comment and file your 
comment online at https://ftcpublic.commentworks.com/ftc/planethyundaiconsent by following the instructions on the web-based 
form. If you prefer to file your comment on paper, write ``TC 
Dealership, L.P.--Consent Agreement; File No. 152-3096'' 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 ``TC Dealership, L.P.--Consent Agreement; File No. 152-3096'' 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 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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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/planethyundaiconsent 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 ``TC Dealership, L.P.--
Consent Agreement; File No. 152-3096'' 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 TC Dealership, L.P., also doing business as Planet Hyundai. 
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.

[[Page 38690]]

    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. 2015-16618 Filed 7-6-15; 8:45 am]
BILLING CODE 6750-01-P
38690 Federal Register / Vol. 80, No. 129 / Tuesday, July 7, 2015 / Notices

The respondent is a motor vehicle prohibits the respondent from violating SUMMARY: Under the provisions of the
dealer. According to the FTC’s any provision of the CLA or Regulation Paperwork Reduction Act, the
complaint, the respondent has M. Regulatory Secretariat Division will be
misrepresented in certain Part III of the proposed order submitting to the Office of Management
advertisements: (1) Vehicle purchase addresses the TILA allegations. Part and Budget (OMB) a request to review
prices; (2) that advertised monthly III.A requires the respondent to make all and approve an extension of a
payment amounts were for vehicle of the disclosures required by TILA and previously approved information
purchases, not leases; and (3) that Regulation Z when any of its collection requirement concerning
consumers can pay $0 at signing to advertisements state relevant triggering delivery schedules. A notice was
obtain vehicles shown in the terms. Part III.B requires that if any published in the Federal Register at 80
advertisements for the advertised finance charge is advertised, the rate be FR 22735, on April 23, 2015. No
monthly amount. The complaint alleges stated as an ‘‘annual percentage rate’’ comments were received.
therefore that the representations are using that term or the abbreviation DATES: Submit comments on or before
false or misleading in violation of ‘‘APR.’’ In addition, Part III.C prohibits August 6, 2015.
Section 5 of the FTC Act. the respondent from failing to comply in ADDRESSES: Submit comments
In addition, the complaint alleges that any respect with TILA and Regulation identified by Information Collection
the respondent violated the Consumer Z. 9000–0043, Delivery Schedules by any
Leasing Act (‘‘CLA’’) and Regulation M Part IV of the proposed order requires of the following methods:
for failing to disclose or to disclose respondent to keep copies of relevant • Regulations.gov: http://
clearly and conspicuously certain costs advertisements and materials www.regulations.gov. Submit comments
and terms when advertising vehicles for substantiating claims made in the via the Federal eRulemaking portal by
lease. advertisements. Part V requires the
The FTC’s complaint also alleges that searching the OMB control number.
respondent provide copies of the order Select the link ‘‘Submit a Comment’’
the respondent violated the Truth in to certain of its personnel. Part VI
Lending Act (‘‘TILA’’) and Regulation Z that corresponds with ‘‘Information
requires notification to the Commission Collection 9000–0043, Delivery
by failing to disclose or to disclose regarding changes in corporate structure
clearly and conspicuously certain costs Schedules’’. Follow the instructions
that might affect compliance obligations provided at the ‘‘Submit a Comment’’
and terms when advertising credit. under the order. Part VII requires
The proposed consent order contains screen. Please include your name,
respondent to file compliance reports company name (if any), and
provisions designed to prevent
with the Commission. Finally, Part VIII ‘‘Information Collection 9000–0043,
respondent from engaging in similar
is a provision ‘‘sunsetting’’ the order Delivery Schedules’’ on your attached
acts or practices in the future. Part I.A
after twenty (20) years, with certain document.
of the order prohibits respondent from
misrepresenting the cost of: (1)
exceptions. • Mail: General Services
The purpose of this analysis is to Administration, Regulatory Secretariat
Purchasing a vehicle with financing,
including but not necessarily limited to, facilitate public comment on the Division (MVCB), 1800 F Street NW.,
the amount or percentage of the proposed order, and it is not intended Washington, DC 20405. ATTN: Ms.
downpayment, the number of payments to constitute an official interpretation of Flowers/IC 9000–0043, Delivery
or period of repayment, the amount of the complaint or proposed order, or to Schedules.
any payment, the annual percentage rate modify the proposed order’s terms in Instructions: Please submit comments
or any other finance rate, and the any way. only and cite Information Collection
repayment obligation over the full term By direction of the Commission. 9000–0043, Delivery Schedules, in all
of the loan, including any balloon Donald S. Clark, correspondence related to this
payment; or (2) leasing a vehicle, Secretary.
collection. All comments received will
including but not necessarily limited to, be posted without change to http://
[FR Doc. 2015–16618 Filed 7–6–15; 8:45 am]
the total amount due at lease inception, www.regulations.gov, including any
BILLING CODE 6750–01–P
the downpayment, amount down, personal and/or business confidential
acquisition fee, capitalized cost information provided.
reduction, any other amount required to FOR FURTHER INFORMATION CONTACT: Mr.
be paid at lease inception, and the DEPARTMENT OF DEFENSE Michael O. Jackson, Federal Acquisition
amounts of all monthly or other GENERAL SERVICES Policy Division, GSA 202–208–4949 or
periodic payments. Part I.B prohibits the ADMINISTRATION via email at michaelo.jackson@gsa.gov.
respondent from misrepresenting any SUPPLEMENTARY INFORMATION:
other material fact about the price, sale, NATIONAL AERONAUTICS AND
financing, or leasing of any vehicle. A. Purpose
SPACE ADMINISTRATION
Part II of the proposed order addresses The time of delivery or performance
the CLA allegations. Part II.A prohibits [OMB Control No. 9000–0043; Docket 2015– is an essential contract element and
respondent from stating the amount of 0076; Sequence 8] must be clearly stated in solicitations
any payment or that any or no initial and contracts. The contracting officer
payment is required at lease inception Submission for OMB Review; Delivery may set forth a required delivery
without disclosing clearly and Schedules schedule or may allow an offeror to
conspicuously: (1) That the transaction AGENCY: Department of Defense (DOD), propose an alternate delivery schedule,
tkelley on DSK3SPTVN1PROD with NOTICES

advertised is a lease; (2) the total General Services Administration (GSA), for other than those for construction and
amount due at lease signing or delivery; and National Aeronautics and Space architect-engineering, by inserting in
(3) whether or not a security deposit is Administration (NASA). solicitations and contracts a clause
required; (4) the number, amounts, and substantially the same as either FAR
ACTION: Notice of request for public
timing of scheduled payments; and (5) 52.211–8, Time of Delivery, or FAR
comments regarding an extension to an
that an extra charge may be imposed at 52.211–9, Desired and Required Time of
existing OMB clearance.
the end of the lease term. Part II.B Delivery. These clauses allow the

VerDate Sep<11>2014 20:31 Jul 06, 2015 Jkt 235001 PO 00000 Frm 00030 Fmt 4703 Sfmt 4703 E:\FR\FM\07JYN1.SGM 07JYN1
Document Created: 2015-12-15 13:26:54
Document Modified: 2015-12-15 13:26:54
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 38689