DRIVERS could be owed a share of a $20 million pot if they bought a car loaded with allegedly essential add-ons from a dealership.
A major dealership group has been accused of advertising false prices and mis-selling optional extras.
GettyA car dealership group has been accused of mis-selling optional extras[/caption]
The Federal Trade Commission has looked into the scheme following a flood of customer complaints.
Those involved allege that Leader Automotive Group, which owns a number of showrooms across Illinois, used low online prices to get drivers through the door.
Sales workers would then allegedly jack the prices up by including a number of “required” add-ons in the final bill.
These included a number of insurance products, such as theft cover, and could run into the thousands of dollars.
Other practices allegedly included charging hundreds for “certification fees” despite the car being advertised as “certified pre-owned”.
Research by the FTC for its filing suggested that the group was seeing profit margins of up to 99% on these extras.
And buyers claimed that these products were added without proper explanation despite not being advertised in the list price of the vehicle.
A survey of the group’s customers found that 80% had been charged for at least one extra feature either without their approval or because they were told that it was essential, according to the FTC.
Meanwhile, investigators further allege that Leader employees were told to flood its page with fake positive reviews in order to drown out criticism online.
The Commission, in conjunction with Illinois AG Kwame Raoul looked into the case and claims to have found evidence of malpractice.
The two offices have now proposed a settlement for the group’s parent company, AutoCanada, to avoid legal action.
Its terms dictate that the group must advertise the full price in listings and obtain express consent for any additional charges before the sale is made.
However, the agreement would also see AutoCanada hand over $20 million in compensation, which will be used to refund customers.
If you believe you were affected by these practices, you can apply for a share of this pot through the FTC or AG’s office.
Payouts will differ depending on the amount you spent, but could run into the thousands for each affected customer.
AG Raoul commented: “This dealership network engaged in bait-and-switch tactics by luring consumers into their dealerships with lower prices only to either require consumers to purchase allegedly pre-installed add-on products or charge consumers for those products without their knowledge or permission.
“I appreciate the collaboration with the Federal Trade Commission to ensure bad actors are held accountable and our consumers are protected from deceptive business practices.”
Samuel Levine, who runs the FTC’s Consumer Protection Bureau, added: “Working closely with the Illinois Attorney General, we are holding these dealerships accountable for unlawfully extracting millions of dollars from consumers through a textbook bait-and-switch scheme, and bolstering their poor reputation with fake reviews.
“We will continue our work to ensure that consumers are not being overcharged for cars, and that honest dealers do not need to compete with firms that cheat.”
It comes after a tech expert shared a new app that can help drivers avoid parking fines and $235 tow bills in major cities.
https://www.the-sun.com/motors/13166413/compensation-pot-dealership-add-ons-illinois/