An Arizona dealership will pay $2.6 million to settle a lawsuit from the Federal Trade Commission and State of Arizona.
Coulter Motor Company, which owns Coulter Cadillac Tempe and Tempe Buick GMC, was alleged by the agencies to have used deceptive online pricing to charge Latino consumers more in interest and add-ons.
The dealership and its former general manager Gregory Depaola will have to pay the settlement.
The FTC stated in a survey of Coulter consumers that 92 percent were charged for add-ons without their authorization or believed were required.
“Coulter used junk fees and other illegal tactics to drive up prices for consumers, especially Latino consumers,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection in a press release. “The FTC will continue cracking down on practices that drive up prices, cheat consumers, and undercut honest sellers.”
The suit claimed Latino customers paid nearly $1,200 more in interest and add-ons compared to white consumers.
It also stated the dealership advertised prices online that consumers were told at the dealership were unavailable due to “market adjustments”, add-ons and fees.l
According to the FTC, $2.35 million of the settlement will be used to refund consumers.
