Which of the following describes a violating advertising practice regarding financing terms?

• A. Offering financing with clear disclosures
• B. Describing terms clearly and truthfully
• C. Including only the APR without other terms
• D. Failing to clearly disclose the APR, loan term, down payment, and total cost, or presenting terms in a confusing or deceptive way

Answer: (D)

Advertising financing terms must be clear, complete, and not misleading. The violation described is failing to clearly disclose essential terms—APR, loan term, down payment, and total cost—or presenting the terms in a way that is confusing or deceptive. That lack of transparency makes it impossible for a consumer to compare costs accurately and can mislead them about the true cost of financing. In contrast, offering financing with clear disclosures and describing terms truthfully meet the standard for compliant advertising. Including only the APR without other terms is also problematic because it omits important information, but the broader issue described—hidden or confusing terms—best captures the violation.