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HOT TOPICS
2015 GNYADA Membership Directory
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MARKETING AND ADVERTISING VEHICLES AND CREDIT TERMS
Awrinkle on prescreening is“trigger leads.”Trigger leads are sold by credit bureaus that prescreen customers, but the
credit bureaus do not communicate the consumer’s name and contact information (usually a cell phone number) to
the prescreen client until another auto dealer pulls the customer’s credit report. At that point, the prescreen client
(typically a lender or another auto dealer in partnership with the lender) will call the customer on the customer’s
cell phone and attempt to induce them away from the original dealership that pulled the credit report. They will do
this often by claiming to offer better purchase or financing terms on
the vehicle or aftermarket products. Some customers literally
have been called on their cell phones while still in the original
dealer’s F&I office.
Trigger leads have been approved by the FTC for consumers
seeking mortgage financing. However, neither the FTC nor
any court has approved trigger leads for indirect auto finance,
and trigger leads in the mortgage context are prohibited in a
number of states including Connecticut, Kansas and Kentucky.
Prescreening differs from preapproval inquiries in that a consumer who passes
the prescreen criteria must receive a firm offer of credit. Persons who do not pass the prescreen criteria do not need
to receive adverse action notices unless they otherwise affirmatively apply for credit and are declined.
Social Media Advertising
Another area of advertising and customer communications is social media, being sites such as Facebook, YouTube,
LinkedIn, Twitter and others. These sites have gained increasing popularity – Facebook has over 300 million
users in the U.S. Social media sites offer dealers a new way to connect with consumers through consumers’
principal means of staying in touch with friends, colleagues and companies with whom they have an interest or a
relationship. All of the advertising laws and regulations described in this Chapter apply to advertising in all media,
including social media.
In March 2013, the FTC issued an update to its “Dot Com
Disclosures” guide to advertisers on making effective online
disclosures. In doing so, the FTC emphasized that consumer
protection laws apply to all advertising, regardless of the medium
used, and include social media even where there is limited space.
Disclosures required to avoid deception or otherwise comply with
the law must be presented in a clear and conspicuous manner
and space constraints in social media do not relieve you of your
obligations to make clear and conspicuous disclosures. You
need to understand how your ads—including any disclosures
required—will actually display in the medium or media in which