STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS ASSURANCE OF VOLUNTARY COMPLIANCE

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Marylou Pierce
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1 r.' STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS In the Matter of: GATOR MOTORS, INC. and GATOR CHRYSLER, fnc., AG Case Number: Respondents. / ASSURANCE OF VOLUNTARY COMPLIANCE Pursuant To Chapter 50 I, Part II, Florida Deceptive and Unfair Trade Practices Act, Florida Statutes (20 I 3 ), the State of Florida, Office of the Attorney General, Depattment of Legal Affairs ("Department") investigated Gator Motors, Inc. and Gator Chrysler, Inc. ("Respondents") regarding their advertisements from approximately May I, through May 13, 2014 (" Investigation Period''). Respondents enter into this Assurance of Voluntary Compliance ("A YC") with the Department without an admission of wrongdoing and for the purpose of resolving this matter only. Pursuant to Section (6), Florida Statutes (2013), the Department accepts this A VC in termination of its investigation. STIPULATED FACTS I. Respondents are Florida corporations with their principle place of business and headquarters located at 300 East Nasa Blvd., Melbourne, Florida 3290 I. Respondents are automotive dealerships which offer the sale and lease of new and used motor vehicles.

2 I ' 2. Respondents Advertise the sale and lease of new and used Motor Vehicles in newspapers throughout Brevard County and surrounding counties, and via the internet throughout the State of Florida. 3. The Department reviewed Respondents' Advertisements of the sale and lease of new and used Motor Vehicles to Florida consumers during the Investigation Period. 4. Based upon the Department's inquiry into the Respondents' advertisements in the Florida Today newspaper (referred to as "Newspaper Advertisements"), it contends that Respondents failed to comply with Chapter 50 I, Part II, Florida Deceptive Unfair Trade Practice Act, Florida Statutes (2013) (" FDUTPA"); the Federal Truth in Lending Act, 15 U.S.C. 1601, et seq, 12 CFR, et seq, otherwise known as Regulation Z ("Regulation Z") and Regulation M, 12 C.F.R. 213, as amended ("Regulation M"), and the Consumer Leasing Act, 15 U.S.C f, as amended ("CLA ''). 5. The Department contends that during the Investigation Period, Respondents Advertised the following promotions without C learly and Conspicuously disclosing all Material terms in Newspaper Advertisements, as required by FDUTPA: a. "Must qualify for all rebates." b. "All prices plus tax, tag, title and $ dealer fee" c. "New prices and payments include applicable rebates including college grad incentives, $1 000 VW conquest/military to dealer" 6. The Department contends that during the Investigation Period, Respondents Advertised the sale and lease of Motor Vehicles without Clearly and Conspicuously disclosing all Material terms in Newspaper Advertisement, including but not limited to, the following: a. Additional fees and costs; Page 2 of II

3 ,., b. Down payment requirements; c. Conditional financing qualifications; d. Disclosures regarding the description and value of any rebate, discount and other incentive programs such as military, student, and teacher discounts. 7. The Department contends that Material terms in Respondents' Advertisements are contained in nonadjacent fine print in font size Jess than or equal to 9-point. 8. The Department contends that during the Investigation Period, Respondents Advertised a statement of a payment or that any or no initial payment was required at the lease signing or delivery without disclosing Clearly and Conspicuously, as Regulation M and the CLA require, the following terms: a. That the transaction advertised is a lease; b. The total amount due at lease signing or delivery; c. Whether or not a security deposit is required; d. The number, amounts, and timing of scheduled payments; and e. An additional charge may be imposed at the end of the lease term. 9. Respondents deny the Department's allegations and maintain that they have engaged in lawful conduct. During the lnvestigation Period, Respondents have fully cooperated with the Department and have voluntarily made changes to the Newspaper Advertisements. JURISDICTION AND VENUE II. The parties agree the State of Florida has jurisdiction over Respondents for the purpose of entering into this A VC and any enforcement actions arising from this A VC. Page 3 of II

4 12. It is further agreed venue for any matter relating to or arising from this AVC shall lie solely in Orange County, Florida. DEFINITIONS 13. For the purposes of this A VC, the parties agree the following definitions shall apply: 14. "Advertising" and "Marketing" (including "Advertisement," "Advertise," and "Market") shall mean a commercial message that directly or indirectly promotes a consumer transaction in any newspaper of general circulation in the State of Florida. 15. "Clear and Conspicuous" (including "Clearly and Conspicuously") shall mean as follows: a. The disclosure is presented in a coherent and meaningful sequence with respect to other statements, representations, claims, or terms being conveyed; b. The disclosure is in close proximity to the statement, representation, claim or tenn it clarifies, modifies, explains, or to which it otherwise relates; c. The disclosure is not contradictory to any statement, representation, claim or term it purports to clarify, modify, or explain, or is otherwise not contradictory or confusing in relation to any other statement, representation, claim or term being conveyed; If the disclosure is conveyed by means of an abbreviation, the abbreviation is commonly understood by the public, or approved by federal or state law; d. The disclosure is legible; Page 4 of 11

5 e. The disclosure is of sufficient prominence in terms of print, size, location and contrast, as compared with accompanying statements, representations, claims or terms, so as to be readily noticeable and reasonably understandable by the person(s) to whom it is directed. 16. "Consumer credit,'' shall have the same meaning as defined in Regulation Z, 12 C.F.R (12) (20 13). 17. "Consumer lease," shall have the same meaning defined in Regulation M, 12 C.F.R (e)(l) (2013). 18. "Material" means likely to affect a reasonable consumer's choice of, or conduct regarding, goods or services. 19. "Motor Vehicle" shall mean: a. any self-propelled Motor Vehicle designed for transporting persons or property on a street, highway, or other road; b. recreational boats and marine equipment; and c. motorcycles. COMPLIANCE TERMS 20. Respondents shall comply with FDUTPA, Regulation Z, and Regulation M, to the extent that they apply to Respondents and Respondents' Newspaper Advertisements. 21. Respondents shall not Advertise the sale or lease of any Motor Vehicle at a particular price or monthly payment when such Advertisement does not Clearly and Conspicuously disclose all Material terms, including but not limited to additional dealership fees and costs. Page 5 of II

6 22. Respondents shall comply with Regulation Z and shall not: a. Misrepresent any Material fact regarding the cost and terms of financing; b. Advertise the amount or percentage of any down payment; the number of any payments or period of repayments; the amount of any payment; or the amount of any finance charge, without disclosing Clearly and Conspicuously the following terms: 1. The amount or percentage of the down payment; 11. The terms of the repayment; and, iii. The annual percentage rate, using the term "annual percentage rate" or the abbreviation "APR." 23. Respondents shall comply with Regulation M and the CLA and shall not: a. Advertise the amount of any payment or that any or no initial payment is required at lease signing or delivery, if delivery occurs after consummation, without disclosing Clearly and Conspicuously the following terms: 1. The total amount due at lease signing or delivery; 11. Whether or not a security deposit is required; iii. iv. The number, amounts, and timing of scheduled payments; and, That an extra charge may be imposed at the end of the lease term in a lease in which the liability of the consumer at the end of the lease term is based on the anticipated residual value of the Motor Vehicle. Page 6 of 11

7 Respondents shall make the terms and conditions of this A VC known to those persons or entities associated with Respondents who are responsible for the implementation, monitoring, and continuation of the obligations set forth in the A VC. MONETARY TERMS fees. These funds shall be payable in their entirety by valid certified or cashier's check, to the Department of Legal Affairs Revolving Trust Fund and delivered to the Office of the Attorney General, Attention: Kristen K. Johnson, Assistant Attorney General, 135 W. Central Blvd., Ste. 1000, Orlando, FL In the event Respondents fail to timely comply with Paragraph 25, Respondents shall be in default of this A VC. Upon default, Respondents stipulate to entry of final judgment in favor of the Department for all outstanding amounts due. Respondents agree evidence of the failure to pay in accordance with the tetms and conditions of this AVC may be in the form of an affidavit from the Department. APPLICABILITY 27. This A VC shall solely apply to and continuously bind Respondents. 28. The parties further agree that Respondents shall not effect any change in the form of business or organizational identity as a method of avoiding the terms and conditions set forth in this A VC. This provision should not be construed to prevent Respondents from changing their form of doing business so long as the successor business is bound by the provisions of this agreement. Page 7 of 11

8 .,' EFFECTIVE DATE 29. The Department's Director of Consumer Protection Division may refuse to accept this A VC at his discretion. This A VC shall only become effective upon acceptance and Director's signature. The effective date of this A VC shall be the date on which the Director signs it. 30. The receipt of or the deposit by the Department of any monies pursuant to this A VC does not constitute acceptance of this A VC and any monies received will be returned to Respondent in the event the A VC is not accepted. 31. This A VC may be signed in multiple counterparts, each of which shall be considered an original, and all of which together will constitute one and the same agreement. CONSTRUCTION OF AVC 32. The terms and conditions of this A VC are the result of joint negotiations between the parties and shall be deemed to have been drafted by both the Department and Respondents. In the event of a dispute, this A VC shall not be construed against either party. 33. Respondents shall in no way represent the Department has approved of Respondents' business and Advertising practices, and shall not use the existence of this A VC to, in any way, imply such approval. CHANGES IN LAW 34. The parties agree if any of the substantive laws cited in this A VC are amended or repealed by the legislature, an authorized government agency, or court, so that such change permits any action prohibited by any section of this A VC, that section of this A VC shall no longer have any force or effect. The remaining terms and conditions of this A VC shall remain Page 8 of 11

9 enforceable as if such i!jegal, invalid, or unenforceable clause, section, or other provision had not been contained herein. Page 9 of 11

10 IN WITNESS WHEREOF, Respondent has caused this A VC to be executed by an authorized representative in the County and State listed below, as of the date affixed thereon. GATOR MOTORS, INC. GATOR CHRYSLER, INC. ~'--" STATEOF COUNTY OF ~'l-td...= )lj()(]. Dated this~ day of~t, BEFORE ME, an offi duly. authorize. to take acknowledgm}tts in the State of Florida, personally appeared, as 'f.[_.is of GATOR MOTORS, INC. and ATOR CH SLER, INC., who acknowledged before me that he executed the foregoing instrument for the purposes therein stated, on this '/JJ day of tjovembe. r, Sworn to and subscribed before me this 1AJ day of ~, ~~~!t~ ' (print, type or stamp commissioned name of Notary Public) Page I 0 of 11

11 Assistant Attorney General Consumer Protection Division Office of the Attorney General Department of Legal Affairs 135 West Central Blvd., Suite 1000 Orlando, Florida (407) phone, (407) Fax Accepted this~ day of a, 2- /)r?c e,,j 1 _, irector Consumer Protection Division Office of the Attorney General Department of Legal Affairs The Capitol Tallahassee, Florida Page 11 of 11

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STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS In the Matter of: AG Case Number: L12-3-1013 KNIVES4WHOLESALE, LLC, d/b/a KNIVES4WHOLESALE, K4W, JASON SAAKES, an Individual,