Home Economy Economic Activity Six car dealerships settle deceptive sales practice lawsuit for $1M

Six car dealerships settle deceptive sales practice lawsuit for $1M

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PBN Staff

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08/15/2024

PMFsPpuR-Neronha-3 — SIX LOCAL car dealerships have agreed to pay customers more than $1 million to settle claims they used deceptive sales practices, R.I. Attorney General Peter F. Neronha says. / COURTESY PETER F. NERONHA

PROVIDENCE – Six local car dealerships have agreed to pay customers more than $1 million to settle claims they used deceptive sales practices, R.I. Attorney General Peter F. Neronha said Thursday. Flood Ford of East Greenwich, Flood Mazda of East Greenwich, Flood Ford of Narragansett, Valenti Subaru of Westerly, Valenti Toyota of Westerly and Saccucci

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PROVIDENCE – Six local car dealerships have agreed to pay customers more than $1 million to settle claims they used deceptive sales practices, R.I. Attorney General Peter F. Neronha said Thursday. Flood Ford of East Greenwich, Flood Mazda of East Greenwich, Flood Ford of Narragansett, Valenti Subaru of Westerly, Valenti Toyota of Westerly and Saccucci Honda of Middletown were accused of automatically charging, or attempted to charge, purchaser fees for an add-on warranty that was not included in the vehicles’ advertised price, according to the documents filed by the attorney general's office in Superior Court on July 29. Those fees violated the Deceptive Trade Practices Act and the R.I. Department of Motor Vehicles rules and regulations, which require dealers to honor prices they advertise and prohibit dealers from charging customers fees for products without first obtaining their consent. “Today’s settlement is another strong step forward in our office’s fight to promote a fair, transparent, and competitive marketplace for all consumers, workers, and businesses,” Neronha said. “Rhode Islanders should be able to trust that that price they see at the beginning of a transaction is the price they end up paying at the end.” Each dealer allegedly charged or attempted to charge each purchaser between $169 and $199 for a theft deterrent warranty that was not included in the advertised price of the motor vehicle, according to court documents. Also, Neronha’s office found that some dealers allegedly suggested that their asking price was the manufacturer’s suggested retail price when it was thousands or tens of thousands of dollars more. Each consumer who paid this fee since Jan. 1, 2021, will receive between $53 and $83 – or approximately the profit each dealer made on the sale of the warranties – while also retaining the benefit of the warranty. Consumers will receive payment approximately 60 days after the settlement is approved by the court. In July 2023, three other Rhode Island motor vehicle dealerships agreed to pay more than $450,000 in refunds to consumers charged for an add-on product not included in the advertised price and other deceptive advertising practices.