§1667c Consumer Lease Advertising; Liability of Advertising Media

Summary

Requires any consumer-lease ad that mentions a payment or says there is no initial payment to show certain facts clearly. The ad must say it is a lease; list the total of any initial payments due on or before the lease is signed or the property is delivered (whichever comes later); say if a security deposit is required; give the number, amount, and timing of scheduled payments; and warn that an extra charge may be due at the end if the consumer’s final liability is based on the item’s expected residual value. Owners or workers at the place where an ad appears are not liable under this rule. For radio ads, the ad meets the rules if it says it is a lease and the total initial payments, states number/amounts/due dates and the total of scheduled payments, and either gives a toll-free phone number or points listeners to a written ad in a local paper that runs from 3 days before to 10 days after the broadcast and includes the required facts. If a toll-free number is given, the lessor must set it up by the broadcast date, keep it at least 10 days from that date, and give the required information by phone or, if asked, in writing. Other federal advertising rules still apply.