Which action would be considered a violating advertising practice regarding financing terms?

• A. Clearly disclosing APR and total cost
• B. Failing to clearly disclose APR, loan term, down payment, and total cost, or presenting terms in a confusing or deceptive way
• C. Displaying the price including all taxes and fees
• D. Providing a simple, consistent monthly payment example

Answer: (B)

Advertising financing terms must be clear and complete. Dealers and lenders are expected to reveal the APR, the loan term, the amount of the down payment, and the total cost of financing in a way that is easy to read and understand. When disclosures are missing or presented in a confusing or deceptive manner, that crosses the line into a violation because it prevents consumers from comparing true costs and understanding their obligations.

So the practice of failing to clearly disclose those elements or presenting terms in a confusing or deceptive way is the problematic one. Clear disclosure of APR and total cost, showing the price with all taxes and fees, and offering a simple, consistent monthly payment example are appropriate ways to advertise financing terms and help customers make informed decisions.