{"id":1030,"date":"2024-08-20T22:04:10","date_gmt":"2024-08-20T22:04:10","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=1030"},"modified":"2025-05-05T10:25:26","modified_gmt":"2025-05-05T10:25:26","slug":"arizona-auto-dealer-hit-with-2-6-million-fine-over-alleged-deceptive-practices","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2024\/08\/20\/arizona-auto-dealer-hit-with-2-6-million-fine-over-alleged-deceptive-practices\/","title":{"rendered":"Arizona Auto Dealer Hit with $2.6 Million Fine Over Alleged Deceptive Practices"},"content":{"rendered":"\n
\"Arizona
The FTC and the office or Arizona AG Kris Mayes claim that dealerships owned by Coulter Motor Company exhibited prejudiced treatment towards Hispanic consumers, as well as a campaign of underhanded sales tactics that included misleading advertising, price inflations, and unwarranted add-ons. File photo: Zoran Karapancev, ShutterStock.com, licensed.<\/figcaption><\/figure>\n\n\n\n

TEMPE, AZ – Coulter Motor Company \u2013 along with its former General Manager, Gregory Depaola \u2013 have been slapped with a lawsuit<\/a> by the Federal Trade Commission (FTC) and the Arizona Attorney General which alleges that the company\u2019s Tempe-based car dealerships have been engaging in a series of deceptive and discriminatory practices against their customers.<\/p>\n\n\n\n

The FTC and the office or Arizona AG Kris Mayes claim that dealerships owned by Coulter Motor Company exhibited prejudiced treatment towards Hispanic consumers, as well as a campaign of underhanded sales tactics that included misleading advertising, price inflations, and unwarranted add-ons.<\/p>\n\n\n\n

According to court documents, Coulter would draw in prospective customers utilizing \u201cbait and switch\u201d <\/em>schemes by offering low sale and lease prices on their vehicles; once the customer was lured in, the price was later increased, sometimes by hundreds or even thousands of dollars. In addition, other charges were snuck into the deals without the customer\u2019s knowledge \u2013 usually hidden in fine print or random webpage links \u2013 often creating a significant financial burden for those purchasing vehicles from the dealer.<\/p>\n\n\n\n

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Defendants\u2019 advertisements on third-party websites do not mention the additional charges,\u201d the FTC\u2019s complaint says<\/a>. \u201cAnd Defendants obscure any reference to these charges on their websites at the bottom of the page, only visible if consumers scroll, or behind small gray hyperlinks appended to its advertisements. Even if a consumer were to find this information, it does not indicate whether the listed charges are part of, or in addition to, the advertised price.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

The price increases were explained away by Coulter to customers as \u201cmarket adjustments<\/em>\u201d due to \u201cmarket shortages,\u201d<\/em> the FTC claims. It is also alleged that the dealers would slip in numerous unrequested and expensive add-ons, such as theft protection, paint coating, and VIN etching; if a wary customer discovered these buried within the extensive paperwork, Coulter sales people would reportedly attempt to convince them that the charges were mandatory when they, in fact, were not.<\/p>\n\n\n\n

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@AZAGMayes<\/a> and the FTC are taking action against Arizona-based Coulter Motor Company for engaging in a wide array of practices that harm consumers, from deceptive online vehicle pricing to charging Latino car buyers more.

Full release here: https:\/\/t.co\/XVaNpUOrrU<\/a> pic.twitter.com\/12ATcPxCdw<\/a><\/p>— Arizona Attorney General's Office (@arizonaago) August 15, 2024<\/a><\/blockquote>