| NEWARK
- The Attorney General’s Office and
the Division of Consumer Affairs have filed
suit against Timco, Inc., owner of Planet
Honda, and Chevrolet 73, Inc., owner of
two vehicle dealerships, for multiple violations
of the state’s Consumer Fraud Act,
Attorney General Stuart Rabner and Acting
Director Stephen B. Nolan announced today.
The
two lawsuits, filed in State Superior Court
in Union and Camden counties, allege that
Planet Honda, a Union Township-based car
dealership, and the Berlin-based Chevrolet
73 and Chevrolet 73 Bargain Corral dealerships,
committed unconscionable commercial practices
and violations of the state’s Motor
Vehicle Advertising Regulations.
The dealerships violated the Motor Vehicle
Advertising Regulations in newspaper and
internet ads by failing to make required
disclosures, including limitations on rebates
to consumers, and failing to disclose previous
damage to and/or prior use of used motor
vehicles.
“A
deal that is impossible to obtain is no
deal at all. Consumers were lured into these
two dealerships by deceptive ads,”
Attorney General Rabner said. “We
expect businesses to make all legally required
disclosures so consumers are protected in
the marketplace.”
The
suits allege multiple violations of the
Consumer Fraud Act, including unconscionable
commercial practices, providing misleading
information to consumers, and withholding
information from consumers such as prior
vehicle damage, among other things. The
specific allegations include:
-
Failure to honor the advertised and/or
negotiated terms of a sale or lease transaction;
-
Failure to disclose to consumers prior
accident history and damage of purchased
or leased cars;
-
Misrepresentation of vehicle mileage;
-
Misrepresentation that certain dealer-provided
options were mandatory;
-
Charging for title and registration in
excess of the MVC fees;
- Use
of the state seal in advertisements to
imply a state certification that did not
exist;
-
Failure to provide consumers with title
and registration in a timely manner;
-
Engaging in “bait and switch”
by advertising a vehicle with a low sales
or lease price and then refusing to sell
or lease that vehicle at the advertised
price;
- Failure
to cancel a contract or pay off a loan
on trade-in vehicles; and
- Violations
of the Used Car Lemon Law, including misrepresentation
of the mechanical condition of a used
motor vehicle.
“The
purchase or lease of a car often is one
of a consumer’s largest purchases
and they should have confidence that the
dealer is treating them fairly,” said
Acting Director Nolan. “In these cases,
consumers were the victims of conniving
schemes intended to boost sales. We intend
to stop these dealers in their tracks and
reimburse those consumers who were taken
for a ride.”
The
state is seeking restitution for consumers
who have filed complaints and maximum civil
penalties which currently provide for up
to $10,000 for the initial violation of
the Consumer Fraud Act and up to $20,000
for each subsequent violation. The state
also is seeking a change in business practices
at Planet Honda and Chevrolet 73 to prevent
future violations.
Deputy Attorneys General Gina M. Betts and
Jeffrey Koziar are representing the state
in these matters.
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