August 10, 2023. The Pennsylvania Attorney General filed a lawsuit against an auto dealership for selling vehicles to consumers "AS-IS" with undisclosed conditions.
On August 9, 2023, the Pennsylvania Attorney General announced that it had filed a lawsuit against a Pennsylvania motor vehicle dealership for selling vehicles to consumers "AS-IS" and failing to disclose that the vehicles had major issues.
The lawsuit alleges that the dealership advertised and deceived consumers into believing that they were purchasing "quality automobiles at the best price possible." However, numerous purchased vehicles were unreliable, did not pass inspection, and had serious engine and transmission problems.
The lawsuit requests that the court order the defendants to:
- Pay restitution to all consumers who have suffered losses;
- Permanently prohibit the dealership from selling motor vehicles in Pennsylvania; and
- Pay civil penalties of $1,000 for each violation of the Consumer Protection Law and $3,000 for each violation involving a consumer age 60 or older.
In announcing the lawsuit, Pennsylvania Attorney General Michelle Henry exclaimed, "This is every used car buyer’s worst fear – paying thousands of dollars and realizing soon after that the vehicle is unusable." "People and families depend on reliable vehicles to get them to work, school, medical appointments, and grocery stores, among other destinations, and it is my duty to protect hard-working Pennsylvanians from being swindled."
"Some dealership employees think that providing consumers with an FTC Buyers Guide indicating that vehicle is "AS-IS' with no warranties, absolves them of liability for known and undisclosed conditions," says Adam Crowell, President & General Counsel at ComplyNet. "Those employees are wrong - consumer protection laws and regulations require the disclosure of material matters to consumers, and omissions can create liability just like false statements - and that is why it is extremely important to provide employees with appropriate training and to hold them accountable when there are violations."
With the myriad of laws and regulations impacting dealerships, consumer complaints about undisclosed vehicle conditions is just one way that a dealership can hit a regulator's radar. ComplyNet works with thousands of dealerships across the company to provide solutions that help prevent illegal activities and regulatory violations, and to resolve consumer complaints before they evolve into investigations.
To learn more about ComplyNet's solutions for managing consumer complaints and compliance in the sales, F&I, and advertising departments, schedule a time to MEET WITH US.
