Attorney General's News Release

August 22, 2008

Nixon files lawsuit against Kansas City car dealer for deceptive and misleading “Drive a Suzuki” promotional campaign

Liberty, Mo. - A Kansas City-area car dealer who used misleading advertisements to lure consumers into purchasing new automobiles at absurdly low monthly rates, before abruptly ending the promotion and forcing consumers to make full payments on the vehicles, is facing a lawsuit from Attorney General Jay Nixon. Nixon filed the petition today in Clay County Circuit Court against Chad Franklin of North Kansas City, who does business as Legend Auto; and CFS Enterprises, the business Franklin operated on the Kansas side. The lawsuit seeks seeking injunctive relief, restitution for consumers and civil penalties.

According to Nixon, Franklin began running a promotional campaign for his dealerships called "Drive a Suzuki" on media outlets in the greater Kansas City area in June 2007. The advertisements generally made two promises to consumers: drive a new Suzuki with no payments for life, or drive a new Suzuki for low fixed monthly payments of $29 to $49. Approximately 650 consumers entered into transactions with the defendants to purchase a new Suzuki based on the terms advertised during the promotional period, which ran until January 2008.

Nixon says Franklin did not allow consumers to negotiate any of the contract terms, which called for consumers to reapply for the low-payment offer after 10 months. At that point, consumers saw their monthly payments skyrocket to full payments, going as high as $700 for some consumers. Many of them have continued making payments on the vehicles at rates that well exceed the promotional offer, while other consumers who couldn't afford the new rates have had their vehicles repossessed for nonpayment.

"Consumers were offered a deal that appeared too good to be true, because it was," Nixon said. "The defendants' advertisements specifically neglected to mention that the terms of the promotion, as sweet as they may have sounded, were good for only a short period, after which consumers may or may not have been eligible for those similar terms upon reapplication."

The result was consumers were then socked with monthly full payments, which would likely be as much as 24 times the payment rate promised in the advertisements.

Nixon's lawsuit is requesting that the court issue an injunction to prevent the defendants from continuing to violate Missouri consumer protection laws, order the defendants to provide restitution to consumers affected by the "Drive a Suzuki" campaign, and to pay appropriate civil penalties and all court costs in the case.

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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.

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