FUSEDMARC

In October of 1996, the attorneys general from 14 states filed lawsuits against Mazda Motor Corp. of America, charging the company with running lease ads that were misleading and deceptive. According to the California attorney general, the company’s ads were misleading the public into thinking that they could lease a car with no money down, when they could not.
The ads in question claimed that people could lease a new Mazda for “zero down” or “one penny down,” but customers were required to pay up-front money for acquisition fees, a refundable security deposit, the first month’s payment, taxes, and license fees. The total up-front fees were usually in excess of $850.
According to the lawsuits, disclaimers for Mazda’s television ads appeared at the bottom of the screen in tiny type, using uncommon abbreviations, and were only on the screen for a very short period of time, making it impossible for consumers to read and understand them.
The attorneys general also said that Mazda’s internal documents showed that those types of ads were aimed at attracting consumers who would normally be hesitant about “out-of-pocket” spending.
In December, Mazda settled the charges by agreeing to change its advertising practices. The company also agreed to pay $857,500 for costs of the investigation.