According to the Federal Reserve Board an advertisement is any “commercial message in any medium that promotes, directly, or indirectly, a credit transaction.” As you can see they have a pretty broad definition of advertisement. Telephone solicitations, internet messages, and price tags with credit information are among the more surprising forms of “advertisements” listed by the Federal Reserve Board.
Category: Dealership Compliance
The federal Truth in Lending Act (TILA) and the accompanying Regulation Z is considered the cornerstone of federal consumer protection laws. For the most part, TILA is simply a disclosure law designed to prevent unscrupulous creditors from preying on consumers. Unfortunately, TILA claims against auto dealers are common and penalties can be steep.
Any marketer worth his salt will tell you that clarity is of the utmost importance in advertising. An unclear ad may fail to convey your intended message and waste precious capital. But state and federal prohibitions on deceptive or unfair trade practices provide an even more compelling reason for clarity – hefty fines!