Monday, 08 November 2021 11:08

NIADA CPO Program Pulled into NYC Dealer Investigation

Written by Nick Zulovich, Auto Remarketing


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The National Independent Automobile Dealers Association’s certified pre-owned program has been brought into an investigation by the NYC Department of Consumer and Worker Protection (DCWP) of multiple dealerships in New York City.

On Nov. 3, DCWP Commissioner Peter Hatch announced cases against two dealer groups---Kings Autoshow and JF Motors---which operate a total of five dealerships in Brooklyn and Queens. Hatch said these dealerships have been engaging in deceptive and unlawful trade practices that “preyed on vulnerable New Yorkers, as well as consumers from across the tristate area."


DCWP’s cases, which will be heard at the city’s Office of Administrative Trials and Hearings (OATH), allege thousands of violations, including violations of the city’s new laws and rules designed to prevent “predatory conduct by the industry.”


In its case against Kings Autoshow, which operates two Brooklyn Mitsubishi locations, DCWP is charging the company with more than 7,000 violations and seeking more than $50,000 in restitution for 34 consumers, civil penalties and revocation of both of its dealership licenses.


The case against JF Motors includes Automania, Luxury Automotive Club and the now-closed World Auto, all of which are in Queens. DCWP is charging the JF Motors group of dealerships with more than 9,000 violations and seeking more than $100,000 in restitution for nine consumers, civil penalties and revocation of its two remaining licenses.


DCWP is also seeking to hold the respective owners and Brooklyn Mitsubishi’s general manager personally liable for the violations.


“These dealerships repeatedly victimized their customers and violated consumer protection laws,” Hatch said in a news release. “We are taking action to a put a stop to their exploitative practices, obtain restitution for the consumers they harmed, and to revoke their licenses so they cannot do this again.”


Among the specific allegations, DCWP highlighted:


1. Using false advertising to lure consumers and charging more than advertised


DCWP alleged both companies used deceptive advertising to...

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