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Without admitting any wrongdoing, John L. Sullivan Chevrolet and the Sacramento County district attorney have settled a complaint over alleged misleading advertising.
Now the Roseville auto dealership, which paid a $48,000 settlement, intends to file a claim against the Southern California promotions firm responsible for the ad that attracted county officials' attention.
Caliber Promotions in Corona, in turn, blames the state for not having an entity to review proposed advertisements for compliance with the law.
Car dealers are responsible for reviewing their own ads and cannot escape responsibility even with an indemnity clause with their promotions company, said Justin Puerta Jr., deputy district attorney. At most, an indemnity clause allows compensation for attorneys' fees and costs, but not the fine itself.
Auto dealers can and do use specialty consultants to advise on ads' compliance with the law, but some choose to ignore the consultants' recommendations to drop questionable ads, Puerta said.
"The state is not in the business of approving or disapproving ads," he said. "The problem is these people, they're working on the borderline of the law. They know...