Competing Dealers Complain About Nissan ‘Outlet’s’ Ads

A Southern California Nissan dealership, trying to boost business by billing itself as a “factory outlet,” has drawn fire from competing dealers who say the ads could mislead customers into thinking they can get special discounts and deals there.

The television and radio ads for Foothill Nissan in La Crescenta are being reviewed by attorneys for Torrance-based Nissan Motor Corp. USA. But the auto importer has decided tentatively that the wording was carefully designed to avoid crossing the line that divides the clever from the untruthful.

Most people think of a factory outlet as a place owned by a manufacturer that offers remnants or overstocked goods at dramatic discounts.

For that reason, Foothill’s campaign “is definitely misleading to customers,” says Tustin Nissan owner Jim Parkinson, one of those who complained to Nissan.

But Nissan says that as long as Foothill doesn’t claim to be the only factory outlet in a region where Nissan has 43 franchised dealers, its ad is technically accurate.

The Department of Motor Vehicles, which licenses California’s car dealers and polices their ads, says it has received no complaints.

General Sales Manager Nick Laly says the ads “have brought us thousands of customers.” He won’t disclose sales but says traffic through the dealership is up 30% since the ads, created by Los Angeles agency Action in Advertising, began airing about two months ago.