New Jersey consumer affairs officials confirmed that eight New Jersey car dealerships and other owners will have to pay $1.8 million to settle alleged deceptive sales practices.
The settlement also calls for dealerships and their owners to try resolving complaints filed by over 45 customers by providing restitution or other compensation under a binding arbitration process, according to NJ newspaper the Daily Record.
Owners include Carmelo Giuffre, of Brooklyn, N.Y. and Ignazio Giuffre, of Colts Neck, N.Y.
Dealerships listed in the settlement are: Route 22 Toyota, Route 22 Honda, Route 22 Nissan, Route 22 Kia, Hackettstown Honda, all in Hillside; Hudson Honda in West New York; and Freehold Hyundai and Freehold Chrysler Jeep.
"This settlement is a tremendous success for the consumers who were affected by the alleged deceptive sales tactics," Acting Attorney General John J. Hoffman said in a statement, according to the Freehold Patch. "The consequences, including a civil penalty of $1.8 million, are particularly appropriate in light of the fact that the owners of these dealerships violated an earlier settlement in which they had promised not to engage in such practices."
The state claims that actions taken by the dealerships violated a prior settlement that Carmelo and Igazio Giuffre, and certain of the dealerships, reached with the New Jersey in 1999.
A number of complaints were received by the Division of Consumer Affairs by consumers who documented a host of allegations against dealers. Complaints alleged that dealers were using bait-and-switch tactics, add-on sales without consent, and dealerships failed to refund deposits in a timely fashion.
"Buying a new or used vehicle can be an intimidating process, especially for consumers who lack the ability to independently learn about a used car's condition or history before making a decision," Division of Consumer Affairs Acting Director Steve Lee said, according to the Freehold Patch. "Our State laws protect all consumers by ensuring they have access to all relevant information when buying a motor vehicle. This settlement is intended to ensure that these dealerships will not again violate our laws or deceive potential customers."
The companies also must hire a state-approved compliance monitor until 2016 to oversee operations. The compliance monitor will then report back to state officials on the progress each dealer has made.
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