(a) General rule. An advertisement for a consumer lease may state
that a specific lease of property at specific amounts or terms is
available only if the lessor usually and customarily leases or will
lease the property at those amounts or terms.
(b) Clear and conspicuous standard. Disclosures required by this section shall be made clearly and conspicuously.
(1) Amount due
at lease signing or delivery. Except for the statement of a periodic
payment, any affirmative or negative reference to a charge that is
a part of the disclosure required under paragraph (d)(2)(ii) of this
section shall not be more prominent than that disclosure.
(2) Advertisement of a lease rate. If a lessor provides a percentage
rate in an advertisement, the rate shall not be more prominent than
any of the disclosures in section 1013.4, with the exception of the
notice in section 1013.4(s) required to accompany the rate; and the
lessor shall not use the term “annual percentage rate,” “annual lease
rate,” or equivalent term.
(c) Catalogs or other multipage advertisements;
electronic advertisements. A catalog or other multipage advertisement,
or an electronic advertisement (such as an advertisement appearing
on an Internet Web site), that provides a table or schedule of the
required disclosures shall be considered a single advertisement if,
for lease terms that appear without all the required disclosures,
the advertisement refers to the page or pages on which the table or
schedule appears.
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(d) Advertisement
of terms that require additional disclosure.
(1) Triggering
terms. An advertisement that states any of the following items
shall contain the disclosures required by paragraph (d)(2) of this
section, except as provided in paragraphs (e) and (f) of this section:
(i) The amount of any payment; or
(ii) A statement of any capitalized
cost reduction or other payment (or that no payment is required) prior
to or at consummation or by delivery, if delivery occurs after consummation.
(2) Additional terms. An advertisement stating
any item listed in paragraph (d)(1) of this section shall also state
the following items:
(i) That the transaction advertised
is a lease;
(ii)
The total amount due prior to or at consummation or by delivery, if
delivery occurs after consummation;
(iii) The number, amounts, and due dates
or periods of scheduled payments under the lease;
(iv) A statement of whether or not a
security deposit is required; and
(v) A statement that an extra charge
may be imposed at the end of the lease term where the lessee’s liability
(if any) is based on the difference between the residual value of
the leased property and its realized value at the end of the lease
term.
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(e) Alternative disclosures—merchandise tags. A merchandise tag stating any item listed in paragraph (d)(1) of
this section may comply with paragraph (d)(2) of this section by referring
to a sign or display prominently posted in the lessor’s place of business
that contains a table or schedule of the required disclosures.
(f) Alternative disclosures—television
or radio advertisements.
(1) Toll-free
number or print advertisement. An advertisement made through
television or radio stating any item listed in paragraph (d)(1) of
this section complies with paragraph (d)(2) of this section if the
advertisement states the items listed in paragraphs (d)(2)(i) through
(iii) of this section, and:
(i) Lists a toll-free telephone number
along with a reference that such number may be used by consumers to
obtain the information required by paragraph (d)(2) of this section;
or
(ii) Directs
the consumer to a written advertisement in a publication of general
circulation in the community served by the media station, including
the name and the date of the publication, with a statement that information
required by paragraph (d)(2) of this section is included in the advertisement.
The written advertisement shall be published beginning at least three
days before and ending at least ten days after the broadcast.
(2) Establishment of toll-free number.
(i) The toll-free telephone number shall be available for no fewer
than ten days, beginning on the date of the broadcast.
(ii) The lessor shall provide
the information required by paragraph (d)(2) of this section orally,
or in writing upon request.
