The owner of three Texas dealerships has responded to the Federal Trade Commission’s allegations of hidden fees for unwanted add-ons and discriminating against Black and Latino consumers.
In a press release, Asbury Automotive Group denied the allegations against its dealerships David McDavid Ford of Fort Worth, David McDavid Honda of Frisco and Irving. The Asbury Automotive Group stated it had conducted an internal review and claimed it had received disclosures of any protection products, including service contracts, maintenance plans and interior-exterior protection.
“Asbury Automotive takes great pride in its compliance procedures and training practices, and firmly believes that we protect our guests and serve them well,” said David W. Hult, Asbury’s CEO. “We offer popular and reliable products that protect our guests and their families including roadside assistance for stranded motorists, coverage for maintenance and unexpected repairs, and protection from interior and exterior damage.”
The owner of the dealership vows to contest the FTC complaint.
“We will not allow the FTC to coerce fines from us or subject us to onerous requirements that negatively impact the car-buying experience for our customers, would not apply to others, and would place us at a competitive disadvantage in the industry. We are confident that we will prevail in the litigation,” Hult said.
Dan Clara, Senior Vice President of Operations, also denied the FTC’s claim that minority customers were charged more for protection products than other customers.
“Asbury is committed to non-discrimination and has implemented policies, training, and monitoring to ensure that our dealerships comply with standards on fair lending and equal credit opportunity,” Clara said. “I am proud that Asbury is one of the few companies in the industry that has a Chief Diversity, Equity, and Inclusion Officer. In addition, the three dealerships in question are highly diverse, from the highest level of leadership to front-line staff workers, and in that way reflect the demographics of the guests they serve.”
The FTC announced the complaint on Aug. 16, stating the three Dallas-Fort Worth area dealerships and general manager Ali Benli engaged in “payment packing,” getting customers to consent to higher monthly payments for a vehicle and adding items to the sales contract.
“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 in a press release. “Like the Combating Auto Retail Scams (CARS) Rule, today’s action underscores our commitment to protecting consumers shopping for cars and leveling the playing field for honest dealers.”
The FTC claims it received numerous complaints. Asbury countered stating that information received through a Freedom of Information Act request showed no consumer complaints about the McDavid dealerships from 2019 through spring 2024.
