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172 3009

UNITED STATES OF AMERICA

BEFORE THE FEDERAL TRADE COMMISSION

COMMISSIONERS: Maureen K. Ohlhausen, Acting Chairman

Terrell McSweeny

In the Matter of

COWBOY AG LLC, a limited liability company, 

d/b/a COWBOY TOYOTA and

COWBOY SCION.

DOCKET NO. CCOMPLAINT

The Federal Trade Commission, having reason to believe that Cowboy AG LLC, a Texas 

limited liability company, doing business as Cowboy Toyota and Cowboy Scion, (Respondent)

has violated provisions of the Federal Trade Commission Act (FTC Act); the Truth in Lending 

Act (TILA) and its implementing Regulation Z; and the Consumer Leasing Act (CLA) and its 

implementing Regulation M; and it appearing to the Commission that this proceeding is in the 

public interest, alleges:

1. Respondent Cowboy AG LLC, doing business as Cowboy Toyota and Cowboy Scion, is a 

Texas limited liability company with its principal office or place of business at 9325 East

R.L. Thornton Freeway, Dallas, Texas 75228. 

2. The acts or practices of Respondent alleged in this Complaint have been in or affecting 

commerce, as “commerce” is defined in Section 4 of the FTC Act, 15 U.S.C. § 44.

3. Since at least October 2016, Respondent has disseminated or caused to be disseminated 

advertisements to the public promoting credit sales and other extensions of closed-end credit 

in consumer credit transactions, as the terms “advertisement,” “credit sale,” “closed-end 

credit,” and “consumer credit” are defined in Section 226.2 of Regulation Z, 12 C.F.R. 

§ 226.2, as amended.

4. Since at least October 2016, Respondent has disseminated or caused to be disseminated 

advertisements to the public promoting consumer leases for automobiles, as the terms 

“advertisement” and “consumer lease” are defined in Section 213.2 of Regulation M, 12 

C.F.R. § 213.2, as amended.
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5. Respondent placed full-page newspaper advertisements in Al Día, a regional Dallas, Texas

area Spanish-language newspaper published by the Dallas Morning News. Al Día is a free 

subscription newspaper that is delivered twice weekly on Wednesdays and Saturdays. Al Día 

makes current editions available on its aldiadallas.com website. Exhibits A and B are 

representative examples of Respondent’s full-page Spanish-language Al Día ads from 

October and November 2016. The full-page Al Día ads measured approximately 22" high by 

12" wide.

6. Respondent ran frequent Spanish-language advertisements in Al Día, including during its 

“Mes de la Herencia Hispana!” (Hispanic Heritage Month!) sales event and its “Acción de 

Gracias” (Thanksgiving) sales event. See Exhibits A and B, respectively. Although 

Respondent’s ads evolved, since at least October 2016, the full-page Spanish-language 

newspaper ads contained substantially similar statements, offers, depictions, and fine print 

disclaimers.

7. In numerous instances, since at least October 2016 until at least July 2017, Respondent’s 

advertisements in Al Día prominently touted the availability of various deals to consumers 

with bad credit, with no down payment, 0% interest rates for 60- or 72-month periods, low 

monthly payments amounts, and other favorable terms. In numerous instances, however, 

Respondent’s advertisements included buried fine print disclaimers, including a lengthy fine 

print disclaimer written only in English, that contradicted its advertisements’ more prominent 

claims.

Representative Advertisement for “Mes de la Herencia Hispana!”

(Hispanic Heritage Month!) Event

8. The top section of Respondent’s full-page October 2016 Hispanic Heritage Month Al Día

advertisements, excerpted from Exhibit A, touted that Respondent’s deals were available to 

individuals with bad credit without requiring a down payment, a Social Security number, or a 

driver’s license. For example, Respondent made the following representations: “Sin 

Engache,” “Con Buen o Mal Credito,” “Sin Seguro Social,” “Sin Licencia de conducir,” 

“Financiamos,” and “Aceptamos Tax ID.” These representations translate to English as 

follows: “Without Down Payment,” “With Good or Bad Credit,” “Without Social Security,” 

“Without Driver’s License,” “We Finance,” and “We Accept Tax ID”:
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Exhibit B is an example of a substantially similar Thanksgiving ad that ran in Al Día in 

November 2016. In December 2016, Respondent altered its advertisements and moved 

language concerning financing to individuals with good or bad credit without requiring a 

down payment, a Social Security number, or a driver’s license to a prominent border area 

surrounding the featured new Toyota vehicles.

9. In the second section of Respondent’s full-page 2016 Hispanic Heritage Month Al Día

advertisements, Respondent announced offers for new 2016 Toyota Tundras, Camrys, and 

Corollas. Respondent touted the availability of 0% interest rates over 60- or 72-month 

periods and low monthly payment amounts, suggesting that consumers could obtain all of 

these terms when financing to purchase these automobiles: 
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This ad section was excerpted from Exhibit A, Respondent’s Hispanic Heritage Month ad in 

Al Día in October 2016.

 This section of the advertisement translates to English as follows:

10. In Paragraph 8 above, Respondent prominently stated that there were no down payments 

(“Sin Engache”) in large print on the top of its full-page newspaper ads. The section of the 

advertisement reproduced in Paragraph 9 contains fine print disclaimers revealing that the 

featured vehicles require down payments of either $999 or $1,999, thus contradicting the 

advertisement’s prominent statements that no down payments were required. 

NEW 2016 TOYOTA TUNDRA NEW 2016 TOYOTA TACOMAS

0% INTEREST FOR 60 MONTHS CCA AVAILABLE

2 Years Maintenance Included 2 Years Maintenance Included

$250 Gift Card with your purchase! $250 Gift Card with your purchase!

$379MONTH* LOW PRICES Only $999 down payment

NEW 2016 TOYOTA CAMRY NEW 2016 TOYOTA COROLLA

0% INTEREST FOR 72 MONTHS CCA 0% INTEREST FOR 72 MONTHS CCA

2 Years Maintenance Included 2 Years Maintenance Included

$250 Gift Card with your purchase! $250 Gift Card with your purchase!

$199/MONTH* $179/MONTH*

Only $1,999 down payment Only $999 down payment
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11. Additionally, in the advertisement section excerpted in Paragraph 9 above, Respondent 

placed asterisks next to the monthly payment amounts. These asterisks appear to refer to a 

lengthy disclaimer buried in fine print at the bottom of the ad. Although the more prominent 

representations in Paragraphs 8 and 9 appeared in Spanish, this fine print disclaimer was 

written only in English. As shown in Exhibit A, the disclaimer stated the following:

As reproduced in larger font, the disclaimer states:

Virtually identical English disclaimers appeared in each of Respondent’s ads through at least 

August 2017.

12. The buried fine print disclaimer in Paragraph 11 reveals that Respondent was including a 

leasing term with its financing offers shown in Paragraph 9 above. Specifically, the low 

monthly payment amounts prominently touted in Respondent’s advertisements were only 

available to consumers who lease the advertised motor vehicles, and not to consumers who 

finance to purchase the motor vehicles. The ads included other finance terms such as “0% 

INTEREST.”

*Pictures for illustration purposes only. All prices plus, tax, title, license and $160 doc 

fee. Lease payments are calculated using TFS Tier 1+ rate, $0 security deposit (waived), 

and mileage residual options of 12,000 mile per year. Payments are subject to change 

with TFS notice of rate change. Based on Model numbers, total MSRP, including 

delivery, processing & handling, and NET CAPITALIZED COST, excludes official 

fees, taxes and dealer charges. LEASE END PURCHASE OPTION excluding tax, title, 

license and $160 doc fee. Customer is responsible for disposition fee of $350 (for less if 

required by state law), and excess wear & tear and 15 cents per mile over 12,000 miles 

per year. NOT ALL CUSTOMERS WILL QUALIFY. Payments are calculated using 

TFS tier 1+ rate. Other tier credit payments are higher. Monthly payments may vary 

depending on final price of vehicle and customer qualifications. Special financing 

available for a limited time to qualified buyers through Toyota Financial Services and 

participating Toyota dealers. Toyota Financial Services is a service mark of Toyota 

Motor Corporation. +$250 Wal-mart gift card with purchase while supplies last to be 

provided by Cowboy Toyota. Offer may not be combined with other offers. Offers 

available in AR, LA, MS, OK and TX. Offers valid through 10 -31-16.
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13. Additionally, the buried fine print disclaimer in Paragraph 11 contradicts Respondent’s more 

prominent representations, in Paragraph 8 above, that its offers were available to consumers 

with bad credit. Specifically, the disclaimer reveals that the advertised offer terms were only 

available to consumers eligible for the “TFS Tier 1+ rates.” TFS Tier 1+ rates are available 

only to consumers with very good or excellent credit, such as those with Auto FICO scores 

of 720 or higher. Further, even if Spanish-speaking consumers were able to notice and read 

this fine print English statement, a reasonable consumer would be unlikely to understand the 

term “TFS Tier 1+ rates.” 

14. Respondent also advertised new 2016 Toyota Tundras, Tacomas, Camrys, and Corollas for 

sale in its January and early February 2017 Al Día advertisements. However, despite these 

representations, during this time period Respondent did not have any 2016 Toyota Tundras, 

Tacomas, Camrys, or Corollas available for sale.

15. Respondent’s advertisements contained TILA triggering terms, such as “0% INTEREST 

FOR 60 MONTHS,” but did not disclose, or did not disclose clearly and conspicuously, 

certain required TILA information, such as:

a. The amount or percentage of down payment required;

b. The terms of repayment, reflecting the repayment obligations over the full term of the 

loan, including any balloon payment; or

c. The “annual percentage rate,” using that term, and, if the rate may be increased after 

consummation, that fact.

16. Similarly, Respondent’s advertisements contained CLA triggering terms, such as the low 

advertised monthly payment amounts, but did not disclose, or did not disclose clearly and

conspicuously, certain required CLA information, such as:

a. Whether the transaction advertised is a lease;

b. The total amount due prior to or at consummation or by delivery, if delivery occurs 

after consummation;

c. Whether or not a security deposit is required;

d. The number, amount, and timing of scheduled payments; or

e. With respect to 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 property, that an extra charge 

may be imposed at the end of the lease term.
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VIOLATION OF THE FEDERAL TRADE COMMISSION ACT

Count I

Misrepresentations Regarding Offers

17. Through the means described in Paragraphs 5 through 16, Respondent has represented, 

directly or indirectly, expressly or by implication, the following regarding the vehicles it 

advertised for sale or lease:

a. No down payment was required;

b. The advertised low monthly payments were available to those who financed 

automobile purchases;

c. The advertised interest rates, monthly payments, and other terms were available to 

consumers with bad credit; and

d. New 2016 model year Toyota Tundras, Tacomas, Camrys, and Corollas were 

available for purchase at the time of the ads in 2017.

18. In fact, in numerous instances:

a. A down payment was required;

b. The advertised low monthly payments were available only for automobile leases;

c. The advertised interest rates, monthly payments, and other terms were available only 

to consumers with very good to excellent credit; and

d. New 2016 model year Toyota Tundras, Tacomas, Camrys, and Corollas were not 

available for purchase at the time of the ads in 2017.

19. Therefore, the representations set forth in Paragraph 17 were false or misleading.

20. Respondent’s practices constitute deceptive acts or practices in or affecting commerce in 

violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).

VIOLATION OF THE TRUTH IN LENDING ACT AND REGULATION Z

21. Under Section 144 of the TILA and Section 226.24(d) of Regulation Z, as amended, 

advertisements promoting closed-end credit in consumer credit transactions are required to 

make certain disclosures (“TILA additional terms”) if they state any of several terms, such as 

the monthly payment (“TILA triggering terms”).
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22. To the extent that Respondent’s automobile sales advertisements promote closed-end credit, 

such as those described in Paragraphs 5 through 16, Respondent is subject to the 

requirements of the TILA and Regulation Z.

Count II

Failure to Disclose or to Disclose Clearly and Conspicuously Required Credit Information

23. Respondent’s automobile sales advertisements promoting closed-end credit, such as those 

described in Paragraphs 5 through 16, included TILA triggering terms, but failed to disclose, 

or to disclose clearly and conspicuously, additional terms required by the TILA and 

Regulation Z, including one or more of the following:

a. The amount or percentage of the down payment;

b. The terms of repayment, which reflect the repayment obligations over the full term of 

the loan, including any balloon payment; and

c. The “annual percentage rate,” using that term, and, if the rate may be increased after 

consummation, that fact.

24. Therefore, the practices set forth in Paragraph 23 of this Complaint violated Section 144 of 

the TILA, 15 U.S.C. § 1664, and Section 226.24(d) of Regulation Z, 12 C.F.R. § 226.24(d), 

as amended.

VIOLATION OF THE CONSUMER LEASING ACT AND REGULATION M

25. Under Section 184 of the CLA and Section 213.7 of Regulation M, advertisements 

promoting consumer leases are required to make certain disclosures (“additional terms”) if 

they state any of the several terms, such as the amount of any payment (“CLA triggering 

terms”). 15 U.S.C. § 1667c; 12 C.F.R. § 213.7.

26. To the extent that Respondent’s automobile advertisements promote consumer leases, such as

those described in Paragraph 5 through 16, Respondent is subject to the requirements of the 

CLA and Regulation M.

Count III

Failure to Disclose or to Disclose Clearly and Conspicuously Required Lease Information

27. Respondent’s automobile advertisements promoting consumer leases, such as those described 

in Paragraphs 5 through 16, included CLA triggering terms, but failed to disclose or to 

disclose clearly and conspicuously additional terms required by the CLA and Regulation M, 

including one or more of the following:

a. That the transaction advertised is a lease;
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b. The total amount due prior to or at consummation or by delivery, if delivery occurs 

after consummation;

c. Whether a security deposit is required;

d. The number, amount, and timing of scheduled payments; and

e. With respect to 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 property, that an extra charge 

may be imposed at the end of the lease term.

28. Therefore, the practices set forth in Paragraph 27 of this Complaint violated Section 184 of 

the CLA, 15 U.S.C. § 1667c, and Section 213.7 of Regulation M, 12 C.F.R. § 213.7.

THEREFORE, the Federal Trade Commission, this ________ day of ____________, 2017, has 

issued this complaint against Respondent.

By the Commission.

Donald S. Clark

Secretary

SEAL: