US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 15USC1667c]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                         Part E--Consumer Leases
 
Sec. 1667c. Consumer lease advertising; liability of advertising 
        media
        

(a) In general

    If an advertisement for a consumer lease includes a statement of the 
amount of any payment or a statement that any or no initial payment is 
required, the advertisement shall clearly and conspicuously state, as 
applicable--
        (1) the transaction advertised is a lease;
        (2) the total amount of any initial payments required on or 
    before consummation of the lease or delivery of the property, 
    whichever is later;
        (3) that a security deposit is required;
        (4) the number, amount, and timing of scheduled payments; and
        (5) 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.

(b) Advertising medium not liable

    No owner or employee of any entity that serves as a medium in which 
an advertisement appears or through which an advertisement is 
disseminated, shall be liable under this section.

(c) Radio advertisements

                           (1) In general

        An advertisement by radio broadcast to aid, promote, or assist, 
    directly or indirectly, any consumer lease shall be deemed to be in 
    compliance with the requirements of subsection (a) of this section 
    if such advertisement clearly and conspicuously--
            (A) states the information required by paragraphs (1) and 
        (2) of subsection (a) of this section;
            (B) states the number, amounts, due dates or periods of 
        scheduled payments, and the total of such payments under the 
        lease;
            (C) includes--
                (i) a referral to--
                    (I) a toll-free telephone number established in 
                accordance with paragraph (2) that may be used by 
                consumers to obtain the information required under 
                subsection (a) of this section; or
                    (II) a written advertisement that--
                        (aa) appears in a publication in general 
                    circulation in the community served by the radio 
                    station on which such advertisement is broadcast 
                    during the period beginning 3 days before any such 
                    broadcast and ending 10 days after such broadcast; 
                    and
                        (bb) includes the information required to be 
                    disclosed under subsection (a) of this section; and

                (ii) the name and dates of any publication referred to 
            in clause (i)(II); and

            (D) includes any other information which the Board 
        determines necessary to carry out this part.

                (2) Establishment of toll-free number

        (A) In general

            In the case of a radio broadcast advertisement described in 
        paragraph (1) that includes a referral to a toll-free telephone 
        number, the lessor who offers the consumer lease shall--
                (i) establish such a toll-free telephone number not 
            later than the date on which the advertisement including the 
            referral is broadcast;
                (ii) maintain such telephone number for a period of not 
            less than 10 days, beginning on the date of any such 
            broadcast; and
                (iii) provide the information required under subsection 
            (a) of this section with respect to the lease to any person 
            who calls such number.

        (B) Form of information

            The information required to be provided under subparagraph 
        (A)(iii) shall be provided verbally or, if requested by the 
        consumer, in written form.

                     (3) No effect on other law

        Nothing in this subsection shall affect the requirements of 
    Federal law as such requirements apply to advertisement by any 
    medium other than radio broadcast.

(Pub. L. 90-321, title I, Sec. 184, as added Pub. L. 94-240, Sec. 3, 
Mar. 23, 1976, 90 Stat. 259; amended Pub. L. 103-325, title III, 
Sec. 336(a), Sept. 23, 1994, 108 Stat. 2234; Pub. L. 104-208, div. A, 
title II, Sec. 2605(c), Sept. 30, 1996, 110 Stat. 3009-473.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-208, Sec. 2605(c)(1), (3), added 
subsec. (a) and struck out former subsec. (a) consisting of introductory 
provisions and 5 pars. relating to contents of lease agreements required 
if consumer lease advertisement stated amount of payment, number of 
required payments, or that any or no payments were required at lease 
inception.
    Subsec. (b). Pub. L. 104-208, Sec. 2605(c)(3), added subsec. (b). 
Former subsec. (b) redesignated (c).
    Subsec. (c). Pub. L. 104-208, Sec. 2605(c)(1), (2), redesignated 
subsec. (b) as (c) and struck out former subsec. (c) which read as 
follows: ``There is no liability under this section on the part of any 
owner or personnel, as such, of any medium in which an advertisement 
appears or through which it is disseminated.''
    1994--Subsecs. (b), (c). Pub. L. 103-325 added subsec. (b) and 
redesignated former subsec. (b) as (c).


                       Study of Advertising Rules

    Section 336(b) of Pub. L. 103-325 provided that: ``Not later than 
365 days after the date of enactment of this Act [Sept. 23, 1994], the 
Board of Governors of the Federal Reserve System shall submit a report 
to the Congress on--
        ``(1) the current rules applicable to credit advertising;
        ``(2) how such rules could be modified to increase consumer 
    benefit and decrease creditor costs; and
        ``(3) how such rules could be modified, if at all, for radio 
    advertisements without diminishing consumer protection.''

                  Section Referred to in Other Sections

    This section is referred to in section 1667d of this title.