The Federal Trade Commission (FTC) has filed an administrative complaint against a large auto dealer group, Asbury Automotive, charging it “systematically” charges customers for add-ons they didn’t authorize.
In particular, the complaint alleges the company seems to target minority customers with unwanted add-ons.
The FTC alleges that three Texas dealerships owned by Asbury engaged in a variety of practices to sneak hidden fees for unwanted add-ons past consumers. The agency said the tactics included a practice called “payment packing,” where the dealerships convinced consumers to agree to monthly payments that were larger than needed to pay for the agreed-upon price of the car, and then “packed” add-on items to the sales contract to make up that difference.
“The FTC will continue to crack down on illegal hidden fees and discrimination, which have no place at car dealerships,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection.
Levine said the action not only protects car shoppers but also “levels the playing field” for honest dealers.
In a statement to the media, Asbury Automotive denied the charges in the complaint and said it plans to mount “a vigorous defense” against the FTC charges.