Consumer Finance Insights
December 5, 2019

Massachusetts AG Announces Settlement with Used Car Dealership for Alleged Deceptive Sales Practices

On November 19, 2019, the Massachusetts Attorney General’s Office (AG) announced that it had settled its investigation into a used car dealership’s allegedly unfair and deceptive sales practices in violation of the Massachusetts Consumer Protection Act. The AG alleged that the Massachusetts​ car dealership​ and its owner misrepresented material information about the used cars sold, sold add-on service contracts that did not cover purchased vehicles, falsified down payments, and added undisclosed fees.

Under the terms of the consent judgment, the dealership may not charge undisclosed fees, and must ensure accurate loan applications, comply with prior use disclosure regulations, and disclose the origin of the cars they sell and implications of add-on products.  The dealership and its owner will pay $750,000 to harmed consumers, and up to $175,000 in suspended penalties for violation of the settlement’s injunctive terms within three years.