Advertising and the Consumer Leasing Act – Overview

Advertising and the Consumer Leasing Act | California lawyers

The Advertising and the Consumer Leasing Act and Regulation M include special requirements for the advertisement of a “consumer lease,” i.e., a lease for personal property to an individual for more than four months for personal, family, or household use where the total contractual obligation is not more than twenty five thousand dollars ($25,000).

Summary of the major requirements of the Act and Regulation M:

  • An ad for a consumer lease must include disclosures of certain information;
  • Special disclosure rules apply to radio and television ads;
  • Special rules and restrictions apply to ads that refer to lease rates; and
  • The terms offered in the ad must be usually and customarily available.

Violations of the Act

The FTC enforces the advertising disclosure requirements of the Advertising and the Consumer Leasing Act and Regulation M. The FTC is authorized to file civil lawsuits against persons who violate the advertising disclosure requirements. There are penalties for a person who violates the advertising disclosure requirements; they may be subject to a cease and desist order, an injunction, a fine, and damages.

If you would like additional information pertaining to the Consumer Leasing Act or related topics, please contact Kingsley & Kingsley.