PROVIDENCE – Three local car dealerships will pay more than a half million dollars to resolve claims brought forth by the R.I. attorney general’s office for charging customers automatic add-ons and fees not included in the advertising price and other such practices.
R.I. Attorney General Peter F. Neronha announced Wednesday that Grieco Honda and Grieco Hyundai of Johnston and Grieco Toyota of East Providence will pay a combined $557,815 to settle the claims. It includes $457,815 in direct restitution to consumers and a $100,000 investigation cost to the attorney general’s office.
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Neronha originally filed suit against the dealers back in March 2022, where Grieco Honda allegedly offered an advertised price for a vehicle but refused to honor that price. Instead, Neronha said at the time, Grieco Honda allegedly charged a previously undisclosed “addendum fee” for as much as $5,000.
Also, the dealerships allegedly charged every customer a fee for a $249 paint and fabric spray and described the vehicles as available for “auction” or “wholesale prices,” Neronha said. Neronha alleged last year in the suit that Grieco Toyota listed more than 100 vehicles under such advertisements.
The settlement prohibits the dealerships from engaging in these practices moving forward, Neronha said.
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.