Facts

The Federal Trade Commission brought a complaint under the FTC Act against defendants relating to their "Biweekly Payment Plan" program for consumers financing the purchase of an automobile.

COMPLAINANT'S CONTENTIONS:
The FTC contended that defendants violated the act when they enrolled consumers in the Biweekly Payment Plan touting the savings it would provide them without disclosing the significant fees associated with the program could offset any savings. The total amount of fees allegedly added up to more than $775 on a standard five-year financing contract.

Result

Pursuant to the settlement reached between the parties, the Matt Blatt Inc. and Glassboro Imports will pay a $184,280 civil penalty. They are also prohibited from representing that any payment program or add on product or service will save a consumer money unless the money is greater than the amount charged in connection with the program, or the information related to savings is clearly and conspicuously disclosed.

Other Information

COMMISSIONERS: Edith Ramirez, Julie Brill, Maurren K. Ohlhausen, Joshua D. Wright, Terrell McSweeney.