Attorney General's News Release

December 19, 1996

Mazda to stop deceptive lease ads under agreement with 24 states; Missouri to receive $42,500 in penalties and costs

Jefferson City, Mo. — Attorney General Jay Nixon announced today that Mazda Motor of America has agreed to change its national auto leasing advertisements to more accurately reflect what consumers will have to pay when they lease, both up front and over the term of the lease.

Missouri is one of 24 states that reached agreements with Mazda over allegations that the auto maker was running false and deceptive advertising that stated that customers could lease a vehicle for “nothing down” or “a penny down,” when no such deal existed and customers in reality were required to pay close to $1,000 at the inception of the lease. Nixon and attorneys general from 13 other states filed suit against Mazda in October over the ads.

“The pertinent information in the television ads was buried in now-you-see-it, now-you-don't small type,” Nixon said. “Today's agreement prohibits Mazda from misrepresenting the true cost to consumers of leasing vehicles.”

Under the agreement, Mazda is prohibited from misrepresenting the costs consumers will bear when they lease. The company also must clearly state the total amount due at lease inception, any requirement of security deposits and the fact that the transaction advertised is a lease.

In addition to reforming its vehicle lease advertising, Mazda will pay a civil penalty of $15,000 to the state of Missouri, and another $27,500 to the Missouri Merchandising Practices Revolving Fund to offset the costs of investigation and pay for consumer education. Today's agreement was approved by St. Louis City Circuit Judge Joan Burger.

The other states that reached agreements with Mazda today include Alabama, Arizona, California, Connecticut, Florida, Hawaii, Idaho, Iowa, Illinois, Kansas, Maryland, Massachusetts, Minnesota, Nebraska, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Washington and Wisconsin. Last month, Nixon and atttorneys general from 22 other states reached similar agreements with General Motors, Honda, Isuzu and Mitsubishi over concerns about their vehicle lease advertising.

Nixon said that Missouri consumers can obtain a free worksheet, called The Reality Checklist, to determine the actual cost of a vehicle lease. The checklist is available by calling the Attorney General's Consumer Protection Hotline at 800-392-8222.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818