Attorney General's News Release

September 30, 1999

Mazda agrees to change auto lease advertising; pay $50,000 to Missouri in penalties and costs

Jefferson City, Mo. — Attorney General Jay Nixon announced today that Mazda Motor of America Inc. has agreed to change its auto lease advertisements and pay $50,000 to Missouri as part of a multi-state settlement.

Nixon says Mazda violated a 1996 judgment requiring the company to clearly and conspicuously disclose key lease terms, such as total up-front costs and the number, amount and timing of payments, in its advertisements. Mazda also was prohibited from advertising any lease terms more prominently than the total amount due at lease-signing. The 1996 order settled suits brought against Mazda by Missouri and 14 other states for misleading lease advertisements.

Despite the earlier agreement, Mazda ads continued to highlight low monthly payments while obscuring the total amount due at lease-signing, Nixon said.

"If you watch the television ads it is easy to see they were up to the same old tricks," Nixon said. "They failed to show the total amount due at signing long enough for it to be noticed or understood by consumers. The ads also contained distracting sounds, small type and other clutter and clearly violated the 1996 judgment."

As part of the settlement, Mazda also agreed to abide by the permanent injunctions included in the 1996 Missouri judgment and is prohibited from misrepresenting the amount of up-front lease costs. Nixon said his office worked closely with the FTC to obtain the settlement. Mazda will pay a total of $1.2 million to the 24 states and $4.05 million to the FTC to settle a similar suit.

Nixon said there several things a consumer should consider before leasing a motor vehicle:

• Consider all the costs of leasing before signing a lease agreement. Most leases have mileage limits and impose substantial penalties for exceeding those limits. Other costs not imposed in a motor vehicle purchase may include "acquisition fees," lease-end "disposition fees," and charges for excessive use.
• Never go into a dealership intending to purchase and come out having signed a lease. Always ask for written materials to take home and review before agreeing to lease.
• Remember that all lease terms are negotiable. Don't think the dealer can't offer a lower monthly payment.
• If you intend to operate the vehicle for five years or more, leasing is seldom a good deal.
• Don't sign a lease agreement unless you are sure you want to lease. Most leases include large penalties for ending the lease early.

Nixon said consumers with complaints about motor vehicles leases or lease advertising should contact 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