- A Maryland Honda dealer has agreed to refund customers that it ripped off.
- Customers unknowingly purchased products and paid undisclosed markups.
- The dealer also advertised prices that were lower than they should have been.
Maryland Attorney General Anthony Brown has announced a settlement with Darcars Honda, which will result in customers being refunded up to several million dollars. While the exact total remains unclear, it appears the dealership engaged in a variety of unsavory business practices.
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According to the government, the dealership “committed unfair and deceptive trade practices” that harmed consumers. In particular, they allegedly charged a 2% “sales commission” fee that wasn’t really a commission and was prohibited by law.
More: FTC Says 90% Of Buyers Paid $2,000 More Than Advertised At Stellantis, GM And Ford Dealer Group
On top of that, the dealer allegedly advertised vehicles for less than their true selling price as they excluded markups and added equipment. Furthermore, Darcars Honda reportedly added “unwanted equipment and products” onto sales transactions.
The Attorney General’s Office added the dealer failed to comply with laws regarding the disclosure of processing fees and didn’t place a required “price statement” on each new vehicle offered for sale. Sales transaction documents also didn’t provide an itemized list, with prices, of what consumers were getting.
While the settlement doesn’t go into specifics, Brown’s office said customers were effectively fleeced with “undisclosed markups and add-on-products that consumers unknowingly purchased.” This appears to be backed up by Google reviews as one claimed, “We were charged a commission fee of $600 that I didn’t notice on the final paperwork until we got home. It was not included in the price we agreed to and, when I asked to keep the form they use to present the costs on the sales floor, they told me it was policy that I couldn’t.”
The consent order forbids Darcars Honda from engaging in the aforementioned conduct and refunding customers that they harmed. The dealer has also agreed to pay $3 (£2.3 / €2.8) million to the Attorney General’s Office.
In a statement, Brown said “Buying a car is one of the most expensive purchases that someone makes in their life. Marylanders shouldn’t pay even more because of a dealer’s unauthorized sales practice.” He added, “This settlement reflects our Office’s commitment to protecting consumers from unfair business practices that violate the law.”
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Lead image credit: Google Street View
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