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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
COMMISSION LEASE ADVERTISING COMPLAINT TOTAL AMOUNT FEDERAL TRADE COMMISSION CONSUMER LEASE SIGNING DELIVERY RESPONDENT FOOTE CONE BELDING ADVERTISING ACT DISCLOSURES FACTS CHARGE VIOLATION VEHICLE SUCCESSORS REVISED REGULATION AGREEMENT JURISDICTION OFFICERS MANNER PAYMENT SUBPARAGRAPH TERMINATE COMPLIANCE APPEALING |
9723192
B236150
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
COMMISSIONERS:
Robert Pitofsky, Chairman
Mary L. Azcuenaga
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
In the Matter of
FOOTE, CONE & BELDING ADVERTISING, INC., a corporation.
DOCKET NO.C-3792
DECISION AND ORDER
The Federal Trade Commission having initiated an investigation of
certain acts and practices of the respondent named in the caption
hereof, and the respondent having been furnished thereafter with a
copy of a draft of complaint which the Bureau of Consumer Protection
proposed to present to the Commission for its consideration and which,
if issued by the Commission, would charge the respondent with
violation of the Federal Trade Commission Act; and
The respondent, its attorneys, and counsel for the Commission having
thereafter executed an agreement containing a consent order, an
admission by the respondent of all the jurisdictional facts set forth
in the aforesaid draft of complaint, a statement that the signing of
said agreement is for settlement purposes only and does not constitute
an admission by the respondent that the law has been violated as
alleged in such complaint, or that the facts as alleged in such
complaint, other than jurisdictional facts, are true and waivers and
other provisions as required by the Commission's Rules; and
The Commission having thereafter considered the matter and having
determined that it had reason to believe that the respondent has
violated the said Act, and that a complaint should issue stating its
charges in that respect, and having thereupon accepted the executed
consent agreement and placed such agreement on the public record for a
period of sixty (60) days, now in further conformity with the
procedure prescribed in Section 2.34 of its Rules, the Commission
hereby issues its complaint, makes the following jurisdictional
findings and enters the following order:
1. Respondent Foote, Cone & Belding Advertising, Inc. is a Delaware
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2
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COMPLAINT
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EXTRACTED KEY WORDS
ADVERTISEMENTS FEES PAYMENTS FEDERAL TRADE COMMISSION CONSUMER PENNY PURCHASE OPTION RESPONDENT ACT MAZDA LEASE DISCLOSURE DEALER CONTRIBUTION EXHIBIT AMOUNT MSRP PRACTICES VIDEO RUNNING FOOTAGE VIOLATIONS VEHICLES AUDIO PROTEG SCREENS LESSEE REGULATION FCB EXHIBITS MIATA PKG PYMT |
9723192
B236150
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
FOOTE, CONE & BELDING ADVERTISING, INC., a corporation.
DOCKET NO.C-3792
COMPLAINT
The Federal Trade Commission, having reason to believe that Foote,
Cone & Belding Advertising, Inc., a corporation ("respondent" or
"FCB"), has violated the provisions of the Federal Trade Commission
Act, 15 U.S.C. §§ 45-58, as amended, the Consumer Leasing Act, 15
U.S.C. §§ 1667-1667e, as amended, and its implementing Regulation M,
12 C.F.R. § 213, as amended, and it appearing to the Commission that
this proceeding is in the public interest, alleges:
1. Respondent Foote, Cone & Belding Advertising, Inc. is a Delaware
corporation with its principal office or place of business at 101 East
Erie Street, Chicago, Illinois 60611.
2. Respondent, at all times relevant to this complaint, was an
advertising agency of Mazda Motor of America, Inc. ("Mazda").
Respondent has disseminated advertisements to the public that promote
consumer leases, as the terms "advertisement" and "consumer lease" are
defined in Section 213.2 of Regulation M, 12 C.F.R. § 213.2, as
amended.
3. The acts and practices of respondent alleged in this complaint have
been in or affecting commerce, as "commerce" is defined in Section 4
of the Federal Trade Commission Act, 15 U.S.C. § 44.
4. Respondent has prepared and disseminated, or has caused to be
prepared and disseminated, consumer lease advertisements ("lease
advertisements") for Mazda vehicles, including but not necessarily
limited to the attached FCB Exhibits A through D. FCB Exhibits A
through C are television lease advertisements (attached hereto in
video and storyboard format) and Exhibit D is a print lease
advertisement. These advertisements contain the following statements:
A. (Audio:) "One penny down. Great leases. Very little time. On
Protegé. A penny (down). And one eighty-nine. The B2300 SE. A penny
down. And one ninety-nine. 626. A penny and two-o-nine. Miata. . .
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3
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
COMPLAINT FEDERAL TRADE COMMISSION LEASE ACT BELDING ADVERTISING PRACTICES REPRESENTATION AGREEMENT ADVERTISEMENTS RESPONDENT FOOTE CONE AMOUNT PAYMENT REGULATION FEES CONSENT ORDERS DRAFT COMPLAINT DISCLOSURES MOTOR VEHICLE TOTAL AMOUNT CREDIT ADVERTISEMENTS PRINCIPAL OFFICE LEASE SIGNING SUBPARAGRAPH PURCHASE OPTION REVISED REGULATION DEALER CONTRIBUTION CLA UNITED STATES |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
FOOTE, CONE & BELDING ADVERTISING, INC., a corporation.
FILE NO. 972 3192
AGREEMENT CONTAINING
CONSENT ORDER
The Federal Trade Commission ("Commission") has conducted an
investigation of certain acts and practices of Foote, Cone & Belding
Advertising, Inc., a corporation ("proposed respondent"). Proposed
respondent, having been represented by counsel, is willing to enter
into an agreement containing a consent order resolving the allegations
contained in the attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between Foote, Cone & Belding Advertising,
Inc., by its duly authorized officers, and counsel for the Federal
Trade Commission that:
1. Proposed respondent Foote, Cone & Belding Advertising, Inc. is a
Delaware corporation with its principal office or place of business
located at 101 East Erie Street, Chicago, Illinois 60611.
2. Proposed respondent admits all the jurisdictional facts set forth
in the draft complaint.
3. Proposed respondent waives:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law; and
c. All rights to seek judicial review or otherwise to challenge
or contest the validity of the order entered pursuant to this
agreement.
4. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission, it, together with the draft
complaint, will be placed on the public record for a period of sixty
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