HR 4788 IH
cle promotion that includes a lease payment amount
and that the dealer participates in and offers to con-
sumers, such dealer shall—
‘‘(A) provide separately for each auto-
mobile which is promoted in such advertisement
or promotion a statement that is dated and
typed or set in type and that sets out accurately
and in a clear and conspicuous manner a sum-
mary of the relevant payment amounts and
other terms applicable to the advertised lease or
vehicle promotion that shall include—
‘‘(i) a description of the vehicle model
advertised, including any accessory or op-
tion;
‘‘(ii) a statement of the charges, fees
and payments to be included in the capital-
ized cost of the vehicle model advertised,
and the total capitalized cost of the vehicle
model;
‘‘(iii) the total number of scheduled
lease payments;
‘‘(iv) the information used to calculate
any advertised monthly lease payment
amount, which shall include fees or charges
not included in the vehicle capitalized cost,
HR 4788 IH
interest charges and vehicle residual value;
and
‘‘(v) the total amount due at lease in-
ception, including all charges or fees to be
paid at or before lease signing and upon
delivery of the leased automobile; and
‘‘(B) make such statement available for re-
view by the public by—
‘‘(i) placing such statement in a con-
spicuous and prominent location in the
dealership; and
‘‘(ii) providing a copy of such state-
ment to any customer who requests it.
‘‘(2) CUSTOMER INCENTIVES.—An automobile
dealer engaged in automobile leasing shall make
available to the public in a conspicuous and promi-
nent location in the dealership a statement that is
dated and that sets out clearly and accurately for
each vehicle model offered by the dealer, as applica-
ble, the incentives, special offers or promotions avail-
able for the benefit of consumers in conjunction with
consumer lease, purchase and installment credit
transactions, that shall include—
HR 4788 IH
‘‘(A) special interest rates that are offered
by automobile manufacturers, financial institu-
tions and leasing companies;
‘‘(B) special incentives, including cash re-
bates and vehicle residual percentages that are
offered by automobile manufacturers directly to
consumers; and
‘‘(C) special incentives and lease terms, in-
cluding vehicle discounts, residual value per-
centages and other vehicle promotions that are
offered to consumers by the dealer.’’.
SEC. 8. DEFINITIONS.
Section 184 (15 U.S.C. 1667c), as amended by sec-
tions 6 and 7, is further amended by adding at the end
the following:
‘‘(f) CLEARLY AND CONSPICUOUSLY.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘clearly and conspicuously’ means—
‘‘(A) in print advertisements, the required
disclosures and explanations of lease terms shall
appear in type size, shade, contract, promi-
nence, and location as to be readily noticeable,
readable, and comprehensible to an ordinary
consumer;
HR 4788 IH
‘‘(B) in the video portion of television or
videotaped advertisements, the required disclo-
sures shall appear on the screen in a type size,
shade, contrast, prominence, and location and
for a duration as to be readily noticeable, read-
able, and comprehensible to an ordinary con-
sumer;
‘‘(C) in the audio portion of television,
videotaped, and radio advertisements, the re-
quired disclosures shall be delivered in a vol-
ume, cadence, and location and for a duration
as to be readily noticeable, hearable, and com-
prehensible to an ordinary consumer; and
‘‘(D) in advertisements on the internet, the
required disclosures shall appear in a type, size,
shade, contract, prominence, and location as to
be readily readable and comprehensible to users
and shall be separated from marketing and pro-
motional information and easily accessible
under the label or heading ‘Important Informa-
tion for Consumers’.
‘‘(2) LIMITATION.—Nothing contrary to, incon-
sistent with, or in mitigation of, the required disclo-
sures shall be used in any advertisement in any me-
dium and no audio, video, or print technique shall
HR 4788 IH
be used that is likely to obscure or detract signifi-
cantly from the communications of the disclosures.’’
SEC. 9. ADMINISTRATIVE ENFORCEMENT.
Chapter 5 of the Consumer Credit Protection Act is
further amended by adding the following new section:
‘‘§ 187. Administrative Enforcement
‘‘Compliance with section 184 of this Chapter shall
be enforced by the Federal Trade Commission, except to
the extent that enforcement of the requirements imposed
under such section is specifically committed to another
agency under section 108(a) of this title. For purposes of
the exercise by the Commission of its functions and powers
under the Federal Trade Commission Act, a violation of
section 184 shall be deemed an unfair or deceptive act or
practice in violation of that Act. All of the functions of
and powers of the Commission under the Federal Trade
Commission Act are available to the Commission to en-
force compliance by any person with such section, irrespec-
tive of whether that person is engaged in commerce or
meets any other jurisdictional tests in the Federal Trade
Commission Act, including the power to enforce the provi-
sions of such section in the same manner as if the violation
had been a violation of a Federal Trade Commission trade
regulation rule.’’
HR 4788 IH
SEC. 10. CIVIL LIABILITY.
Section 130(a)(2) of the Truth in Lending Act (15
U.S.C. 1640) is amended by striking ‘‘or’’ at the end of
subparagraph (A), by inserting ‘‘or’’ at the end of sub-
paragraph (B), and by adding after subparagraph (B) the
following:
‘‘(C) in the case of calculating the total civil li-
ability for violation of any requirement of chapter 5,
the liability under this subparagraph shall not be
greater than $10,000;’’.
SEC. 11. REGULATIONS.
The Federal Reserve Board, not later than 6 months
after the date of the enactment of this Act, shall issue
regulations to implement the amendments made by this
Act. The Board shall also issue regulations, together with
staff commentary if appropriate, to update and clarify the
requirements and definitions for lease disclosures and any
other issue relating to consumer leasing to carry out the
intent of the amendments made by this Act, to implement
any initiative to prevent the circumvention of the amend-
ments made by this Act, and to facilitate compliance with
the requirements in the amendments.
Æ