PROVIDENCE – R.I. Attorney General Peter F. Neronha is suing a pair of local car dealerships for allegedly engaging in unfair consumer pricing practices directed at prospective car buyers, which would violate the state’s Deceptive Trade Practices Act.
Neronha alleges that Grieco Honda, based in Johnston, offered an advertised price for a vehicle but refused to honor that price. Instead, Neronha said, Grieco Honda allegedly charged a previously undisclosed “addendum fee” for as much as $5,000. Neronha said this practice, if proven true, is “deceptive and unfair” to customers who rely on prices promised by the dealership, with customers either being prevented from purchasing the vehicle at that advertised price or paying thousands more than expected.
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Neronha also alleges that East Providence-based Grieco Toyota – a sister dealer of Grieco Honda and part of the Grieco Automotive Group – deceptively advertised that it was selling vehicles at “wholesale prices” and car buyers could “pay what we pay going to the auction.” Neronha alleges that Grieco Toyota listed more than 100 vehicles under such advertisements.
Neronha said state rules and regulations governing auto dealers prohibit them from using deceptive terms, such as “wholesale prices” in vehicle advertising, which leads to violating the Deceptive Trade Practices Act.
In a statement, Neronha said Tuesday that with various challenges currently existing for customers in purchasing vehicles, it is “now more important than ever that car dealers treat Rhode Islanders fairly and refrain from advertisement and selling practices designed to confuse and mislead them.
“Most businesses in Rhode Island play by these basic rules. The comparatively few that don’t should know that this office, now empowered by the 2021 changes we sought to the state’s consumer protection laws, is prepared to make sure they do,” Neronha said.
The suits were filed this week in Providence County Superior Court. Neronha is seeking to have the court permanently halt the dealerships from conducting misleading advertising, issue civil penalties to the dealers of up to $10,000 for each violation of the Deceptive Trade Practices Act, and make the dealers pay restitution to affected car buyers, as well as court costs and fees.
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.
