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Tucson Car Dealer to Pay $152,000

January 4, 2005
A Tucson car dealer will pay $152,000 to settle a lawsuit filed by the state charging that the company falsely advertised advertised new cars for sale at 50 percent off the manufacturer’s suggested retail price.

The state's suit alleged that Precision Toyota's television and radio ads that offered consumers 50 percent off the manufacturer's suggested retail price on "every new Toyota in stock."

In fact, the discount applied only to the residual value on leased cars, and the lawsuit alleged the practice violated the Arizona Consumer Fraud Act.

“Precision Toyota tried a bait-and-switch tactic, and it backfired,” Attorney General Terry Goddard said. “Arizona consumers have the right to expect a fair and truthful marketplace. This settlement sends a clear message to Arizona businesses that false advertising to bring customers into their showrooms, stores or companies will not be tolerated.”

The $152,000 settlement will go to pay the state's legal costs and contribute to a state consumer-protection fund.

The “50% off MSRP” sale required consumers to sign up for a 36-month lease on a new vehicle, which also required a down payment. At the end of the lease period, Precision Toyota would give the consumer an option to purchase the vehicle for 50 percent off the vehicle’s residual value.

“The Precision Toyota case is a prime example of misleading tactics some businesses use to sell their products,” Goddard said. “I’m committed to ensuring consumers have a level playing field in Arizona’s marketplace.”

The Attorney General’s Office received more than 65,000 consumer complaint calls last year, a figure Goddard said makes clear the need to place high priority on protecting consumers.

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