{"id":292,"date":"2022-10-21T16:41:12","date_gmt":"2022-10-21T16:41:12","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=292"},"modified":"2025-05-05T10:24:30","modified_gmt":"2025-05-05T10:24:30","slug":"auto-dealer-settles-with-ftc-over-junk-fees-gouging-black-latino-customers","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2022\/10\/21\/auto-dealer-settles-with-ftc-over-junk-fees-gouging-black-latino-customers\/","title":{"rendered":"Auto Dealer Settles with FTC Over \u201cJunk Fees,\u201d Gouging Black, Latino Customers"},"content":{"rendered":"\n
\"BMW
As part of the settlement, Passport Automotive Group, based in Maryland, has agreed to pay more than $3.3 million, which the FTC said will be distributed to victims of the scam to cover their losses. File photo: Yauhen D, Shutter Stock, licensed.<\/figcaption><\/figure>\n\n\n\n

WASHINGTON, D.C. – An automotive dealer has settled a complaint filed against them by the Federal Trade Commission (FTC) on Tuesday that alleged that they were adding illegal \u201cjunk fees\u201d<\/a> to the purchase prices of the vehicles they sold for \u201cunnecessary\u201d services such as certification, reconditioning, or inspections.<\/p>\n\n\n\n

In addition to charging junk fees, the FTC also claimed that the dealer in question \u2013 Passport Automotive Group \u2013 was especially focused on price gouging Black and Latino customers<\/a>, according to Samuel Levine, Director of the FTC\u2019s Bureau of Consumer Protection.<\/p>\n\n\n\n

With this action against Passport and its top executives, the Commission is continuing its crackdown on junk fees and discriminatory practices that harm Black and Latino consumers,\u201d Levine said. \u201cAs families struggle with rising prices, companies that think they can hit consumers with hidden fees should think again.\u201d<\/em><\/p><\/blockquote>\n\n\n\n

Passport, based in Maryland, owns car dealerships around the Washington, D.C. metropolitan area.<\/p>\n\n\n\n

The FTC notes<\/a> that junk fees are \u201cunnecessary charges for worthless, free, or fake products or services.\u201d<\/p>\n\n\n\n

Junk fees are unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value,\u201d The FTC said. \u201cConsumers may be slammed with charges for products or services that cost companies nothing to provide, are available for free, or should be included as part of the purchase price. Companies might also upsell consumers on fake products or services that either have no value or never materialize.\u201d<\/em><\/p><\/blockquote>\n\n\n\n

As part of the settlement, Passport Automotive Group has agreed to pay more than $3.3 million, which the FTC has stated will be distributed to the victims of the scam to cover their losses. The dealer is also prohibited from deceiving customers about fees and from discriminating against specific groups by charging them higher prices.<\/p>\n\n\n\n

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1. @FTC<\/a> has taken action against DC-area car dealer Passport Automotive, its president, Everett Hellmuth, and its vice president, Jay Klein, for tacking junk fees onto car sales and charging higher financing fees to Black and Latino customers.https:\/\/t.co\/Xh8ETtZoQm<\/a><\/p>— Lina Khan (@linakhanFTC) October 19, 2022<\/a><\/blockquote>