Press release from Washington AG Rob McKenna:
VANCOUVER, Wash. –The Attorney General’s announced today that it is suing RGH Marketing, Inc., and the general manager of Interstate Auto Liquidators, as part of an ongoing crackdown on deceptive practices by some dealers and marketers.
“Deceptive advertising by some auto dealers and marketers has accelerated in the down economy,” Attorney General Rob McKenna said.
McKenna said that’s unfair for auto businesses that are playing by the rules and for consumers.
“Whether some dealers are intentionally detouring around the law or ignorant of it doesn’t matter in the end – they can still be sued. The increased sales revenue isn’t worth so much when you have to pay attorneys’ fees and penalties.”
Since 2007, the Attorney General’s Office has accused five marketing businesses and two Washington dealerships of false advertising. That tally includes the latest lawsuit, filed this week in Clark County Superior Court. It accuses RGH Marketing, of Happy Valley, Ore., and Robert G. Hubbard, Jr., of violating the violating Washington’s Consumer Protection Act, Promotional Advertising of Prizes Act and Dealers’ Licenses Act.
Hubbard lives in Oregon and is the general manager of Interstate Auto Liquidators, based in Vancouver, Wash. RGH Marketing claims on its Web site that it is a wholesale division of Whitney’s Auto Group, whose members include Whitney’s Chevrolet in Montesano, Aberdeen Honda, Whitney’s Value Ford in Elma, Interstate Auto Liquidators in Kelso, and Stormy’s Used Cars in Elma.
“We believe that RGH Marketing promoted off-site sales at locations throughout Washington, making it appear these were special bank-ordered events,” Assistant Attorney General Mary Lobdell explained. “In fact, we believe the cars were from the Whitney’s Group dealers’ regular inventory or were picked up at auto auctions.”
The state’s complaint accuses the defendants of using terms such as “Pre-Auction Auto Sale,” “Repos,” and “Bank Asset Sale.” Ads also included statements such as “$0 Down Delivers!” when RGH knew or should have known that the dealer can’t prove these statements are true.
In 2006, the Oregon Department of Justice sent a notice to Hubbard, doing business as U.S. Marketing Direct, along with RGH Marketing and other individuals. The agency alleged their direct mail advertisements for “pre-auction liquidation” sales events violated the law. The flyers advertised events by Nationwide Fleet Liquidators. Oregon DOJ said the sales were conducted by Kirby Car Company and Newberg Dodge Chrysler Jeep and, despite advertising claims, the vehicles were offered at retail prices.

Starting Tuesday, Sept. 1, it is illegal for businesses to use robocalls (automated phone messages) to sell their stuff. If you enjoy robocalls, it is possible to provide written authorization to allow them to legally continue…

The new law won’t eliminate robocalls. But it WILL eliminate any possibility that the robocall from your “bank” seeking sensitive financial information is legitimate…oh wait. I see that the banks are exempt from this rule. Why the heck is that? The most abusive robocalls reported to me in the past year involved scamsters posing as credit union representatives. I would have thought that the banks would WANT to be covered by this rule. Shows what I know.

Political messages are exempt too.

Here’s the rundown as provided by the Better Business Bureau:

Although Better Business Bureau complaints regarding robocalls have become increasingly more common in recent years, a new law could drastically reduce complaints of this nature.

The Federal Trade Commission recently announced a rule that prevents unsolicited robocalls to consumers.  Effective September 1, 2009, most robocalls will be illegal and telemarketers must obtain permission in writing from consumers in order to make prerecorded commercial telemarketing calls.

Telemarketers in violation can incur penalties of up to $16,000 per call.

As an amendment of the FTC’s Telemarketing Sales Rule (TSR) from 2008, this new regulation enforces a strict stance against prerecorded pitches and harassment from robocallers. Prior to this, soliciting businesses were required to provide an opt-out function in their prerecorded messages—such as a voice or keypad—activated prompt, or a toll-free phone number with an automated opt-out system. Now, these calls are prohibited regardless of whether the consumer has previously done business with the seller.

This prohibition does not include or affect “informational” calls or recorded messages from select healthcare providers, banks, telephone carriers, politicians, and certain charitable organizations. In addition, calls that do not solicit the sale of goods or services may also be exempt.

“For those who have felt burdened by the recent influx of robocalls, it’s been a long time coming,” said Robert W.G. Andrew, CEO of BBB serving Alaska, Oregon and Western Washington. “Now, consumers can decide whether to accept or decline prerecorded telemarketing calls.”

Those who receive unwanted prerecorded telemarketing calls after the rule goes into effect, but have not agreed to them in writing, should:

• Register home and cell phone numbers on the Do Not Call List at www.donotcall.gov or call 1-888-382-1222.
• Contact the FTC and file a complaint at www.ftccomplaintassistant.gov or call 1-877-382-4357.
• Be aware of the regulations governing telemarketing, which protect consumers and businesses. For more information, check with the FTC and your BBB at www.bbb.org.

Read your BBB’s recent article on robocalls: http://www.westernwashington.bbb.org/article/bbb-warns-consumer-of-robocalls-promising-to-lower-their-credit-card-interest-rate-10973 .