Sunday, July 28, 2013

Metro Ford to pay fine in marketing law settlement

Metro Ford of Madison will pay $76,893 to settle accusations of state consumer law violations, mainly disclosure requirements, in a marketing promotion mailed to thousands of state residents starting last fall.

The company admitted no wrongdoing but apologized and vowed to tighten its quality control.

The Department of Agriculture, Trade and Consumer Protection had filed a seven-count complaint in Dane County Circuit Court over the car dealership?s mailings to south central Wisconsin residents, according to online court records.

The mailings urged residents to meet with a company salesperson to receive a prize and consider buying a car.

According to a DATCP statement, the 100,000 mailings in five batches did not disclose the number of prizes to be given away, or a verifiable retail value of the prize. The odds of winning each prize were calculated incorrectly, the DATCP said, and those incorrect odds were printed in a smaller type size than required. Nor did the mailings disclose that a limited number of persons were eligible for the prize.

Metro Ford, also known as Wisconsin Auto Center, apologized for the mailings and said it had self-reported the potential violations to state officials.

The agreement is ?in the best interest of our customers, our employees and business,? said Michele Hill, Metro Ford spokeswoman. In addition to making internal changes because of the charges, she said, ?we have changed our policies to provide more prior approvals to promotional materials, and we are moving our printing back to Wisconsin. These steps will allow us more quality control, so this does not happen again.?

Hill said the mailings were printed in Texas.

Source: http://host.madison.com/news/local/metro-ford-to-pay-fine-in-marketing-law-settlement/article_020c29f3-ba84-5152-b816-2b77ae540c9f.html

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