NEWARK, NJ — As supply chain issues continue to affect prices for new and used vehicles, on May 20, acting Attorney Matthew J. Platkin and the Division of Consumer Affairs announced separate settlements totaling nearly $400,000 with three car dealerships for alleged consumer protection violations.
The alleged violations included: failing to disclose prior accident history; deceptive advertising; failing to honor vehicle warranties; failing to list vehicle prices on sales documents; charging consumers for certain fees twice; failing to itemize aftermarket products or dealer-installed options; failing to obtain consumer signatures on all sales documents; and accepting incomplete credit applications from prospective buyers.
In addition to paying civil monetary penalties, the dealerships agreed to refrain from engaging in any unfair or deceptive acts or practices, comply with all applicable state and federal laws, and resolve consumer complaints.
“Dodging illegal practices should be the last thing New Jerseyans have to worry about as they search for a vehicle in this challenging market,” Platkin said. “These settlements demonstrate our commitment to protect consumers and ensure transparency in the state’s auto market.”
“The division has a duty to protect New Jersey consumers by ensuring dealerships live up to their promises,” acting Director of the Division of Consumer Affairs Cari Fais said. “In addition to providing relief to affected consumers, these settlements make clear that we will not tolerate car dealerships that disregard our laws and regulations.”
Open Road Auto Group, which operates 15 locations around New Jersey — including locations in Union and Springfield, agreed to a $300,000 settlement to resolve an investigation into allegations that included failing to disclose prior accident history, using deceptive advertising and failing to honor vehicle warranties. Open Road Auto Group also agreed to provide a $100 service credit coupon toward service, maintenance or repair for all consumers who purchased a vehicle in 2017 and were charged a wash-and-detail fee. Additionally, the company will enter binding arbitration to resolve all pending complaints from affected consumers and any additional consumer complaints received by the division for a period of three years.
Glen Motors Inc., located in Fair Lawn, agreed to a $90,000 settlement — which includes $66,088.98 in civil penalties — to resolve allegations that included failing to list the price of motor vehicles on its sales documents, failing to itemize aftermarket products or dealer-installed options, and failing to obtain consumer signatures on all sales documents. Glen Motors Inc. also agreed to enter binding arbitration to resolve all pending complaints from affected consumers and any additional consumer complaints received by the division for a period of two years. A portion of the settlement amount will be suspended and automatically vacated provided the company complies with the terms of the agreement over a two-year period.
Finally, the division also announced a settlement with several Lynnes dealerships, all located in Bloomfield. Lynnes agreed to a $46,381 settlement, which includes $33,500 in civil penalties to resolve allegations that included charging consumers for certain fees twice, accepting incomplete credit applications from prospective buyers, and failing to list vehicle prices on sales documents. Lynnes also agreed to enter binding arbitration to resolve all pending complaints from affected consumers and to arbitrate, if necessary, any additional consumer complaints received by the division for a period of three years. A portion of the settlement amount will be suspended and automatically vacated provided the company complies with the terms of the agreement.
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