NEWARK
– Attorney General Paula T. Dow and
Sharon Joyce, Acting Director of the Division
of Consumer Affairs, today announced that
four dealerships within the “Sansone
Auto Network” have agreed to settle
a state lawsuit by paying $175,000 and revising
their business practices.
The state alleged that the four Sansone
dealerships, located in Middlesex and Monmouth
counties, violated the state’s Consumer
Fraud Act and Motor Vehicle Advertising
Regulations by failing to disclose to consumers
prior damage to used vehicles, prior rental
or fleet use of used vehicles, and that
the price posted or advertised for a used
motor vehicle did not include licensing
costs, registration fees and taxes.
“Our laws and regulations require
disclosure of material facts to consumers
prior to their purchase of a motor vehicle.
We expect full compliance, so consumers
can make informed decisions before spending
their hard-earned money,” Attorney
General Dow said.
The four dealerships included in the Consent
Judgment are 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.
Two of these dealerships – Sansone
Chevrolet and Sansone Dodge -- entered into
a Consent Order with the Division of Consumer
Affairs in 2004 to resolve allegations similar
to the ones contained in the 2009 lawsuit.
Without admission of liability or any wrongdoing,
the defendants agreed to the following business
practices to settle the state’s lawsuit:
- not engage in any deceptive
acts or practices in the conduct of their
business in the state and comply with
all applicable state and/or federal laws,
rules and regulations;
- discern the prior use
of a motor vehicle offered for sale or
lease and disclose such information to
consumers prior to their purchase or lease
of the motor vehicle;
- discern whether a motor
vehicle offered for sale or lease has
been involved in an accident or otherwise
sustained damage and disclose such information
to consumers prior to their purchase or
lease of the motor vehicle;
- when disclosing prior
use and/or prior damage to a motor vehicle
via Carfax or similar vehicle history
report, clearly and conspicuously identify
the link as Carfax (or similar vehicle
history report), along with a designation
of “Free Vehicle History Report”
within the description of the motor vehicle;
- include the statement
that “price(s) include(s) all costs
to be paid by consumer, except for licensing
costs, registration fees, and taxes”
in any website or other advertisement;
- in any advertisement,
clearly and conspicuously disclose whether
a motor vehicle had been previously damaged
and that substantial repair or body work
has been performed on it, when defendants
know or should have known of such repair
or body work;
- in any advertisement
of a used motor vehicle at an advertised
price, clearly and conspicuously disclose
the motor vehicle’s prior use, when
such prior use is known or should have
been known, unless previously and exclusively
owned or leased by individuals for their
personal use; and
- in any advertisement
of a motor vehicle at an advertised price,
include the statement that “price(s)
include(s) all costs to be paid by consumer,
except for licensing costs, registration
fees, and taxes.”
The
defendants face imposition of an additional
maximum $200,000 in civil penalties if the
terms of the Consent Judgment are violated
during the next 12 months.
“We expect compliance
with this settlement, and we will again
act to protect consumers, if any violations
occur,” Acting Director Joyce said.
The $175,000 payment required
under the Consent Judgment includes $83,232.58
in civil penalties and $91,767.42 in reimbursement
to the state for its attorneys’ fees
and investigative costs.
Deputy Attorneys General
Alina Wells and Patricia Schiripo of the
Consumer Fraud Prosecution Section represented
the state in this action. Investigator Murat
Botas in the Office of Consumer Protection
led the investigation.
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