Lawsuits Against Mazda come "Out of the Blue"

10/31/96

IRVINE, Calif., Reuters: Fourteen states have filed lawsuits against Mazda Corporation for alleged false and deceptive advertising practices.

The states filing lawsuits include Arizona, California, Connecticut, Hawaii, Idaho, Illinois, Iowa, Maryland, Massachusetts, Minnesota, Missouri, Nevada, Ohio, and Washington.

"This thing came literally out of the blue," spokesman Jay Amestoy told Reuters. "We are at a loss to understand why we are being singled out when our practices are in line with the rest of the industry."

The lawsuits, however, claim that leases which the company advertised as "zero-down" or "penny-down" actually required up-front payments of up to $900, including a security deposit, first month's lease payment, and, in some cases, an acquisition fee of up to $450.

Michael Jennings -- The Auto Channel