Evening star., 1949-09-15
'FTC Crackdown
On Financing Of
Car Sales Slated
Session Held to Druft
Code Hears Deceptive
Practices AssuiIed

Lowell %. MdSOu, dCGlllS ClldlI~
man of the Federal Trade Com
mission, said today the commits
sion will crack down on automo-
bile dealers guilty of deceptive
practices in the installment sale
of automobiles.
He told a meeting called by
the commission to draw up code
of fair trade practices in the sale
of autos:
Give us the facts and we will
back you up by complaints, orders
and civil suits for the collection
of penalties against law violators
as fast as we can process the
cases."
He said also that as far as hs
was concerned there would be ne
buck passing" at the commission.
II predict you businessmen who
obey the law will need the en-
couragemept of vigorous prosecu-
tions against the chislers who
decide their customers he said.
200 Attend Meeting.
He said the commission does
not propose to sit by idly while
honest dealers suffer at the hands
of those who violate the law and
"pack" sales contracts with
hidden charges.
About 200 representatives Of the
retail automobile business, banks
and finance companies, lawyers
and representatives Of the motor
ing public attended the meeting
in the Commerce Department
auditorium.
Spokesman for various business
interests pledged their help in
wiping out the Objectionable prac-
tices. Among the first speakers
to promise support were repre-
sentatives Of the American Auto
mobile Association and the Better
Business Bureau.
Commissioner Mason commend
ed the automobile industry and
financial interest in standing
against unfair practices Of
minority. He emphasized that
free competition, which exists only
in the United States, will do more
to wipe out such practices than
40, 900 cops looking over the
shoulders of 10000 businessmen"
Signing to Be Voluntary.
He said the trade conference
will draw up the rules of fair
play" but made it clear no one
is compelled to sign. He said the
commission Is not seeking a new
law, but a common understand
ing between Government and
commerce as to what the law
now is.
Shortly after Commissioner
Mason spoke, Charles c. Collins,
Washington lawyer and counsel
of the American Automobile As
sociation. declared mis- organiza-
tion backs the tentative trade
rules the commission had dis
tributed.
Mr.. Collins told the gathering
that everyone engaged in the
automobile and accessory business
should be required to state all
items of financing.
Sees Return of Abuses.
\ He declared the prewar abuses
will return. although in the post
war period people have been so
glad to get automobiles and the
profit margin was so great due to
the absence of real competition
that deceptive financing had
dropped.
Harry E. Uhler. representing the
Automobile Club of Maryland,
told the gathering that purchasers
of automobiles repeatedly find
they have not been covered by
personal or property damage al
though they thought they were.
He said salesmen should be in
structed to give the full and COM
plete story on finances in the
beginning.
Paul Cameron. chief of the
commissions Rule Making Divi-
sion, told the conference that
after the proposed new rules have
been threshed out, the commission
will hold public hearing on
them. Subsequently, he said, the
commission will approve and pro-
mulgate final rules and send them
to interested parties for sigma
ture, through an acceptance card.