FOR IMMEDIATE RELEASE:
April 23, 2003

FOR FURTHER INFORMATION CONTACT:
Genene Morris (973)504-6327

NEWARK - New Jersey has joined 39 other states and U.S. territories in urging manufacturers of sport utility vehicles ("SUVs") to ensure their advertisements do not misrepresent the cargo capacity and handling capabilities of their SUVs, Acting Attorney General Peter C. Harvey and Consumer Affairs Director Reni Erdos said today.

In letters to 16 manufacturers of SUVs, New Jersey and 39 other states and territories have expressed concern over the industry's advertising of SUVs and have outlined practices they consider to be deceptive. Specifically, the states and territories have informed SUV manufacturers that it may be a deceptive or unfair act or practice to advertise SUVs in a manner that:

• blurs the handling distinction between SUVs and passenger cars;
  
  
• touts cargo volume without explaining the safe weight limitations of SUVs and/or;
  
  
• exaggerates high-speed abrupt maneuver/emergency avoidance handling capabilities.

"Consumers are entitled to full, fair and honest information in order to make informed decisions when considering whether to purchase SUVs. We believe that the failure to disclose this material information, or to wait until after the sale to disclose it, constitutes a deceptive and unfair trade practice under most state consumer laws," the letters read.

The letters also cite information from the National Highway Traffic Safety Administration demonstrating that SUVs are three times more likely to roll over than passenger cars. The letters were sent to the executive officers of the United States/North American operations of the following manufacturers: BMW, Daimler Chrysler Corporation, General Motors, Honda, Hyundai, Isuzu, Kia, Mazda, Mercedes Benz, Mitsubishi, Nissan, Porsche, Subaru, Suzuki, Toyota, Volkswagen.

"We are putting SUV manufacturers on notice that we expect them to comply with consumer protection laws and to engage in honest business practices," Acting Attorney General Harvey said. "It is our hope that the manufacturers will be responsible corporate citizens and ensure their advertisements do not mislead or deceive consumers."

"This is a safety issue," Director Erdos said. "The letters arise out of our concern that the advertisements of many manufacturers may mislead people about the safe handling of SUVs without properly addressing certain safety issues associated with these types of vehicles. We want to ensure that the advertisements will not lead to the overloading and improper handling and use of the SUVs which could result in serious injury or even death."

The current action by the states and territories follows a nationwide settlement between Ford Motor Company and all 50 states, as well as the District of Columbia, Puerto Rico and the Virgin Islands, to resolve allegations that, among other things, that auto manufacturer's advertising misled consumers as to the safe use of Ford SUVs. As part of the $ 51.5 Million settlement, Ford made a total payment of $15.9 Million to the 53 participating states and territories and agreed to provide $30 Million for a national public service consumer education campaign regarding SUV safety. New Jersey's share of the settlement was $300,000.

Along with New Jersey, the following states and territories have signed onto the letters: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Iowa, Illinois, Kansas, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Montana, Nevada, New Hampshire, New Mexico, North Carolina, New York, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virgin Islands, Washington, West Virginia, Wisconsin, and Wyoming.

Deputy Attorney General Lorraine Rak of the Division of Law handled this matter for New Jersey.