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NEWARK
– The Office of the Attorney General
and Division of Consumer Affairs have filed
suit against four dealerships within the “Sansone
Auto Network” for alleged violations
of consumer protection laws and regulations
governing the advertisement and sale of used
motor vehicles.
Additionally,
two of these dealerships allegedly violated
a 2004 Consent Order with the state which
concerned similar issues.
The
four Sansone dealerships, located in Middlesex
and Monmouth counties, allegedly violated
the state’s Consumer Fraud Act by:
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failing to disclose to consumers any prior
damage to used motor vehicles offered for
sale;
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failing to disclose to consumers the prior
use of used motor vehicles offered for sale;
and
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failing to disclose to consumers that the
price posted for used motor vehicles did
not include licensing costs, registration
fees and taxes.
The
four dealerships also allegedly violated the
state’s Motor Vehicle Advertising Regulations
by:
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In their internet advertisements, failing
to disclose that a used motor vehicle was
previously registered and used as a rental
car or corporate fleet vehicle;
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In their internet advertisements, failing
to disclose that advertised motor vehicles
were previously damaged and were subjected
to substantial repair and body work; and
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In their internet advertisements, failing
to include the statement that "price(s)
include(s) all costs to be paid by the consumer,
except for licensing costs, registration
fees, and taxes" as legally required.
“There
is no doubt that consumers would want to know
– and must be told – about prior
damage to, and fleet or rental use of, a vehicle
that they are considering for purchase. The
defendants’ failure to disclose such
important information violates our state’s
consumer protection statute,” Attorney
General Anne Milgram said.
The
Sansone Auto Network has offered used motor
vehicles for sale through the Sansone Website
(www.sansoneauto.com), as well as www.ebay.com
and www.autotrader.com.
The
three-count complaint, filed in State Superior
Court in Middlesex County, names as defendants
Fords National Auto Mart, Inc., which does
business as Sansone Ford Lincoln Mercury in
Ocean Township; Paladin Chevrolet, which does
business as Sansone Chevrolet in Avenel; Sansone
Plaza Dodge, Inc., which does business as
Sansone Dodge in Ocean Township; and Sansone
Management Corp., which does business as Sansone’s
Route 1 Auto Mall in Avenel.
The
Sansone Dodge and Sansone Chevrolet dealerships
in April 2004 entered into a Consent Order
to settle a prior investigation by the Division.
In the Consent Order, Sansone Dodge and Sansone
Chevrolet agreed not to engage in any deceptive
practices in violation of the Consumer Fraud
Act and the Motor Vehicle Advertising Regulations,
including failing "to disclose, prior
to sale, any prior use of a motor vehicle"
and failing "to disclose that a motor
vehicle has been previously damaged and/or
that substantial repair or body work has been
performed."
Without
admitting liability, Sansone Dodge and Sansone
Chevrolet agreed to pay consumer restitution
in the amount of $30,813, to pay a civil penalty
of $85,000.00 and to reimburse the Division’s
investigative and other costs in the amount
of $5,000. The Consent Order also provided
that any future violation of the Consent Order
or the CFA would be a second and subsequent
violation subject to enhanced penalties.
“It’s
disturbing that two of these dealerships allegedly
engaged in the same deceptive conduct that
they pledged to stop back in 2004,”
said David Szuchman, Consumer Affairs Director.
“We will seek enhanced penalties for
these violations, as allowed in the 2004 Consent
Order. And we want these consumer abuses to
stop, once and for all.”
The
Consumer Fraud Act provides for enhanced civil
penalties of up to $20,000 for each violation.
Deputy
Attorney General Alina Wells of the Consumer
Fraud Prosecution Section is representing
the state in this action.
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