NEWARK – With supply chain issues continuing to affect the availability of new and used vehicles, Attorney General Matthew J. Platkin and the Division of Consumer Affairs today announced settlements with six different car dealerships totaling more than $260,000 to resolve allegations of consumer protection violations.
The dealerships’ alleged violations include failing to list prior accidents, damage, and repairs made to vehicles; failing to honor the advertised price of a used car; charging excessive vehicle preparation fees that were not itemized or properly disclosed to the consumer; failing to provide a written warranty; failing to disclose the full sale price of a motor vehicle; and deceptive advertising.
Along with paying civil monetary penalties, fees, and costs, the dealerships agreed to stop engaging in any unfair or deceptive acts or practices, comply with all applicable state and federal laws, and resolve consumer complaints.
“Consumers have enough to worry about in this challenging car market, and illegal practices by car dealerships should not be one of them,” said Attorney General Platkin. “These settlements should put dealers on notice that we will not stop protecting New Jerseyans and are always working to ensure a transparent auto market.”
“Residents of New Jersey deserve better than car dealerships that break promises and engage in deceptive advertising, especially during this time of uncertainty in the car market,” said Division of Consumer Affairs Acting Director Cari Fais. “Through these settlements, we are making it very clear that dealerships disregarding our laws and regulations will not be tolerated.”
Today, a $180,000 settlement with one car dealerships was announced, joining five other settlements since the summer of 2022.
Park Place of New Jersey, LLC, located in Elizabeth, agreed to a $180,000 settlement to resolve an investigation into allegations that included charging consumers excessive vehicle preparation fees that were not itemized or properly disclosed, failing to include the total selling price in advertisements for used cars, failing to disclose damage and repairs to used motor vehicles, and failing to give written warranties to consumers.
Under the terms of the Consent Order entered with the Division, Park Place of New Jersey, among other things, agreed to:
- Comply with all applicable state and/or federal laws, rules, and regulations, including the Consumer Fraud Act, the Motor Vehicle Advertising Regulations, and the Automotive Sales Practices Regulations;
- Honor all advertised sale or lease prices;
- Accurately disclose the sale price of vehicle on the sales documents;
- Disclose previous damage and substantial repairs done to used cars in advertisements; and
- Clearly and conspicuously disclose all disclaimers, qualifiers or limitations for offers in advertisements.
Park Place of New Jersey also agreed to reimburse customers overcharged for vehicles or charged the “vehicle restoration fee.” Additionally, the company will enter binding arbitration through the Division’s Alternative Dispute Resolution (ADR) Unit to resolve all pending complaints from affected consumers and any additional consumer complaints received by the Division for a period of one year.
Earlier in December, Foulke Management Corp., which operates Cherry Hill Triplex and Mt. Ephraim Chrysler Dodge, agreed to a $25,000 settlement to resolve an investigation into allegations that included failing to post the total sale price of motor vehicles on websites.
Under the terms of the Assurance of Voluntary Compliance entered with the Division, Foulke Management Corp., among other things, agreed to comply with all applicable state and/or federal laws, rules, and regulations, including the Consumer Fraud Act, the Motor Vehicle Advertising Regulations, and the Automotive Sales Practices Regulations.
In October,
Auto Spot LLC, located in Garfield, agreed to a $17,522.40 settlement to resolve an investigation into allegations that included failing to disclose damage and repair work on used cars, including a statement in advertisements for used cars that required consumers to print and present their vehicle pricing page as a coupon, failing to pay administrative fees, and deceptive advertising.
Under the terms of the Assurance of Voluntary Compliance with the Division, Auto Spot among other things, agreed to:
- Include a statement that “prices include all costs to be paid by consumer, except for licensing costs, registration fees, and taxes,” in the advertisement of new or used motor vehicles;
- Disclose in the advertisement that a motor vehicle had been previously damaged and that substantial repair or body work has been performed on it when such prior repair or body work is known or should have been known;
- Pay the Division’s lemon law administrative fees and a “Certification of Administrative Fees;” and
- Not use prohibited advertising language on their website
Auto Spot also agreed to enter binding arbitration through the Division’s ADR Unit to settle the complaints of affected consumers and to resolve any additional consumer complaints received by the Division for a period of one year.
Also in October, Fleet Lease Network,
Inc., located in Jersey City, agreed to an $8,777.00 settlement to resolve an investigation into allegations that it engaged in deceptive advertising practices by failing to list the prices of motor vehicles on its website and by not honoring its advertised prices, terms and/or conditions.
Under the terms of the Consent Order with the Division, Fleet Lease Network, Inc., among other things, agreed to:
- Include and accurately disclose the prices of cars advertised on its website;
- Include mandatory disclosures in all advertisements;
- List the total selling price of merchandise where it is offered for sale; and
- Honor all advertised motor vehicle prices, terms and/or conditions.
In August, Auto Direct Cars, LLC located in Edgewater Park, agreed to a $22,391.50 settlement to resolve an investigation into allegations that included failing to pay the Division’s lemon law administrative fees, charging a documentary service fee without itemizing the service provided and advertising a used car for a certain price without including required advertising language.
Under the terms of the Consent Order with the Division, Auto Direct Cars among other things, agreed to:
- Include the statement that states “price(s) include(s) all costs to be paid by the consumer, except for licensing costs, registration fees and taxes,” in advertisements of used cars
- Not charge a documentary service fee without itemizing the actual service performed
- Charge a $0.50 administrative fee from every consumer who buys a used car
- Pay the Division’s lemon law administrative fees and a “Certification of Administrative Fees.”
Finally, in July, Cars2Sell LLC, located in East Hillside, agreed to a $7,536 settlement to resolve an investigation into allegations that included deceptive advertising, failing to disclose accident information on used cars, failing to give consumers a written warranty that meets the requirements of the Lemon Law, and failing to pay administrative fees.
Under the terms of the Consent Order with the Division, Cars2Sell, among other things, agreed to:
- Include a statement that “prices include all costs to be paid by consumer, except for licensing costs, registration fees, and taxes,” in the advertisement of new or used motor vehicles;
- Disclose in the advertisement that a motor vehicle had been previously damaged, and that substantial repair or body work has been performed on it when such prior repair or body work is known or should have been known; and
- Provide consumers with a written warranty that meets the requirements of the Lemon Law.
First Lease Network also agreed to enter binding arbitration through the Division’s ADR Unit to resolve all pending complaints from affected consumers and any additional consumer complaints received by the Division for a period of one year. The cases were handled by the Consumer Fraud Prosecution Section within the Division of Law’s Affirmative Civil Enforcement Practice Group. Deputy Attorney General Jeffrey Koziar represented the State in the Park Place and Foulke Management Corp matter; Deputy Attorney General James M. Greenberg represented the State in the Auto Direct Cars matter; and Deputy Attorney General Amber N. Dailey represented the State in the Auto Spot matter; Deputy Attorney General Deepta Janardhan represented the State in the Cars2Sell matter; and Deputy Attorney General Donna J. Dorgan represented the State in the Fleet Lease Network matter. Investigators Kristen Reilley, Kelly Fennell and Gregory Zeichner of the Office of Consumer Protection within the Division of Consumer Affairs conducted the investigations.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 to receive a complaint form by mail.
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The mission of the Division of Consumer Affairs, within the Department of Law and Public Safety, is to protect the public from fraud, deceit, misrepresentation and professional misconduct in the sale of goods and services in New Jersey through education, advocacy, regulation and enforcement. The Division pursues its mission through its 51 professional and occupational boards that oversee 720,000 licensees in the state, its Regulated Business section that oversees 60,000 NJ registered businesses, as well as through its Office of Consumer Protection, Bureau of Securities, Charities Registration section, Office of Weights and Measures, and Legalized Games of Chance section.
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