PRESS RELEASE FOR IMMEDIATE RELEASE
Contact: Barbara Gadbois, Deputy Attorney General
Director, Consumer Protection Unit
Phone: (302) 577-8600
Date: October 14, 2005
FIRST STATE AUTO WORLD, Inc. AGREES TO HALT DECEPTIVE ADVERTISING
Enters into Consent Order with AG's office
(Wilmington, DE): First State Auto World, Inc. has agreed to refrain from deceptive advertising and to pay $19,350 in penalties and costs to the Delaware Consumer Protection Fund pursuant to a Consent Order, Attorney General Brady announced today.
Pursuant to the Consent Order to Cease and Desist, First State Auto World, Inc. (hereinafter, "Dealer") agrees to refrain from any and all false, misleading or deceptive advertising. The State alleged that the Dealer violated Delaware's Consumer Protection laws through false and misleading statements by:
- running 851 advertisements in a local newspaper between January 1 and March 29, 2005 falsely claiming that the vehicles had been owned by only one owner, when that was not true;
- inferring that the seller was a private individual rather than a dealer;
- including "5K" in each advertisement before the telephone number although the Dealer was never licensed to operate under the name 5K; and
- including "5K" in each advertisement which was likely to cause confusion to consumers about whether the vehicle had been driven only 5,000 miles when that was not the trueth.
Superior Court Judge Charles H. Toliver, IV signed the Consent Order between the Dealer and the Department of Justice on October 7, 2005.