A Honda $HMC dealership in Bowie, Maryland is facing civil charges after it allegedly engaged in “unfair or deceptive trade practices at nearly every stage” of new vehicle sales, according to Maryland Attorney General Anthony Brown.
The July lawsuit from the AG’s office alleges the dealership – and its parent company DARCARS Automotive Group – violated Maryland’s Consumer Protection Act. It allegedly tricked customers by adding a two percent fee to the vehicle’s sale price under the guise of an optional “sales commission,” according to Automotive News. However, the fee wasn’t actually a commission, and customers didn’t realize they didn’t have to pay it.
Since January 2019 at the latest, DARCARS Honda has allegedly advertised new-vehicle prices on its website that were misleading – meaning customers would end up paying over the advertised price. Those costs include preinstalled equipment and the dreaded Adjusted Market Value charge. Yikes. Some of the charges were for add-ons like “DARCARS Assurance” and the “DARCARS Protection Plan.” On top of that, the unwanted equipment and products were not clearly listed and itemized on the final cost sheet.
If found guilty, the dealership could end up having to pay up to $10,000 for each violation of the Consumer Protection Act.
Here’s what the AG’s office had to say about the suit. From AutoNews:
“It is important that if a car dealer is going to advertise the price of the vehicle, that the price include everything that the consumer is going to be charged,” Philip Ziperman, deputy chief for the Maryland Attorney General’s Consumer Protection Division, told Automotive News.
A spokesperson for the dealership told Automotive News that the case is not “supported by the record or the facts.”
“Over the last two years, Honda of Bowie has cooperated fully with the Maryland Attorney General to respond to its request for information and address its concerns,” according to the DARCARS statement.
The DARCARS spokesperson said they are “prepared to defend our company and our lawful practices in court against these baseless claims.”
The Attorney General’s Consumer Protection Division is seeking an injunction to stop the alleged violations. It is also demanding restitution, economic damages, penalties and costs for the breaches of the Maryland Consumer Protection Act it is claiming, according to AutoNews.
If the AG finds DARCARS Honda of Bowie in violation of the Consumer Protection Act, it would require the dealership to “cease and desist from engaging in unfair or deceptive trade practices.” It would also be required to take corrective action – including providing refunds to customers along with that possible $10,000 per violation fine, Automotive News reports.