Attorney General's News Release

May 1, 2006

Washington auto dealer will cease running deceptive ads, pay costs under agreement obtained by Nixon

Farmington, Mo. — A car dealership based in Washington, Mo., that lured customers to a sale in Bonne Terre by making false claims about prices and financing must stop violating Missouri fair trade laws under an agreement obtained by Attorney General Jay Nixon.

Nixon filed a lawsuit against Fairway Auto Sales on Feb. 9 alleging that the company held a sale at an off-site lot in Bonne Terre in January while using the name "Fleet Liquidators." The name, Nixon said, was intended to confuse customers into thinking the event was put on by a different company offering exceptionally low prices. The lawsuit said the off-site sale violated Missouri fair trade laws by:

• Using a different name to keep consumers from knowing that Fairway was holding the sale.
• Falsely claiming the cars were being offered as part of an Internal Revenue Service tax liquidation sale.
• Falsely claiming the sale prices "absolutely ended" on a certain date.
• Offering "zero sales taxes" on cars bought during the sale, when by Missouri law the purchaser is responsible for sales taxes.

"Our agreement will put an end to the practice of drawing customers under false pretenses," Nixon said. "Retailers in Missouri who attempt this kind of marketing will have to answer for it to my office."

Under the consent judgement, Fairway is prohibited from advertising any sales under the name "Fleet Liquidators." They must also stop marketing their sales as IRS tax liquidator sales; stating that a sale will "absolutely end" on any date other than the actual end date of the sale; or allow purchasers to pay zero sales tax. The judgment also stipulates that the defendants pay $5,000 to the state to cover the costs of the investigation and enforcement of the Merchandising Practices Act.

To file a complaint about this company of others, consumers can fill out and submit an online complaint form at www.ago.mo.gov, or contact the Attorney General's Consumer 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 the Press Secretary.

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