Why Toyota is encouraging fraud
The new Toyota commercials showing people dumping their cars so they can get new ones are amusing, clever and most likely very effective in marketing new cars. They also encourage fraud.
With more people than ever “upside-down” on their car loans — and already having an incentive to ditch their vehicles — subtle suggestions that it’s OK to take this drastic step doesn’t help.
No one believes that these commercials alone will entice car owners into criminal behavior. But there is a growing body of research that suggests an environment that tolerates acceptance of unethical behavior does influence some people to act unethically. And these commercials add to that negative environment.
The latest research by the coalition shows public tolerance of fraud alarmingly high and growing. We need stronger outreach to convince people to reject fraudulent behavior, not reinforce it.
I’ve written to the president of Toyota and appealed to him to abandon this campaign. We’ve also asked for a meeting to solicit Toyota’s support in a campaign to discourage auto give-ups.
I can understand why Totota’s ad agency came up this campaign. The underlying message is nobody likes insurance companies anyway, so why not get them to help you buy a new car. But what I don’t understand is why a car company would want to encourage a practice that makes it more expensive for their customers to use their product.
If we meet with Toyota executives, perhaps we can find out.
P.S. Let Toyota know how you feel about this advertising campaign. You can e-mail the company at its website.
Update – December 19, 2007: The Boston Globe ran a great story on this issue today. Pressure is building on Toyota to abandon these ads.
Update II – December 19, 2007 – Here’s Toyota’s response to one state fraud bureau director’s letter. Rather weak.
Update III – December 21, 2007 – The Republican-American newspaper out of Waterbury, Conn. published an outstanding editorial this morning. They understand how some people will be influenced in our culture:
Given people’s attitudes on fraud and the proclivity of some to “try this at home” — the Jackass Syndrome, if you will — insurers should not be surprised to see a spike in the number of claims for totaled vehicles.
But this may be the best line in the editorial:
The industry would be wise to keep track of those claims, but rather than add the cost to everyone’s premiums, it should send the bill to Toyota with a short note: “You asked for it, you got it, Toyota.”
December 26th, 2007 at 5:16 pm
My wife and I are in the process of purchasing a new car. We had planned on buy a fully loaded Toyota Avalon until we saw the Toyota ad campagn promoting insurance fraud. We consider any company that promotes criminal behavior to be amoral. Now, we’ll never again consider buying a Toyota. And, we’ll encourage anyone else who will listen to avoid this company.
January 3rd, 2008 at 11:26 am
I just think the ads are funny. They are no different than ads that show cars going around curves at a kijillion miles an hour. Then saying in small print “Pro driver on closed course”
January 6th, 2008 at 3:36 pm
The campaign is terrible. The commercials are not witty or funny at all. If they would have taken an approach of having peoples old clunkers fall apart (without any help from the owners) they would have been able to get their message across without encouraging insurance fraud. This is beyond belief that they would stoop this low to market their product. Just think about it. Why would anyone drop a bolder on their working vehicle? If you own an old vehicle out right then you can sell it or trade it in – no need to throw it in the ocean or drop a huge rock on it. And if you are financing an older model than doing those actions would be ILLEGAL!! Insurance fraud. It’s true that many times car company show their cars at high rates of speed taking monster turns and warn that it’s a professional driver, but also stated in the caption is that it’s a ‘closed course’ and not encouraging to do this on a public road.
January 16th, 2008 at 6:08 pm
I never took away the message of Insurance Fraud from the commercials. Perhaps you are only seeing what you want to see in the commercial. The commercial starts out with people “finding” reasons to purchase a new vehicle (presumably when they already have a working vehicle that takes them from point a to point b); people are wrecking their own vehicles as an excuse to buy a new one.
July 11th, 2008 at 10:29 am
[...] Toyota — that preeminent car maker that ran tv ads six months ago encouraging people to dump their cars — has just been named the most reputable company in the world. [...]
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