The New York Metropolis Division of Shopper and Employee Safety introduced that it reached a settlement with JF Motors, which operates the used automotive dealerships Automania, Luxurious Car Membership, and World Auto, resolving fees that the corporate engaged in false promoting and different unlawful practices in reference to the sale of used vehicles. As a part of the settlement, the corporate agreed to pay $225,000 in restitution to customers and $150,000 in civil penalties. The corporate additionally agreed to give up its licenses, which prevents it from working a used automotive dealership for not less than two years.
The DCWP sued JF Motors late 2021. Within the lawsuit, the DCWP alleged that the corporate bought its vehicles for costs at nicely above the costs marketed. DWCP additionally alleged that the corporate’s dealerships falsely marketed vehicles as “licensed pre-owned” by the Nationwide Impartial Car Sellers Affiliation, regardless that the corporate didn’t conduct the required inspection, give patrons the promised guarantee, or present the required automobile historical past report. As well as, DCWP charged that the corporate inflated automotive costs by including pretend charges.
In asserting the settlement, New York Metropolis Mayor Eric Adams stated, “Preying on New Yorkers trying to purchase a used automotive will not be solely unacceptable, it’s unlawful. With this settlement, we’ve taken swift motion to carry these shady dealerships accountable.”
This settlement is a crucial reminder to entrepreneurs that, not solely does New York Metropolis license numerous varieties of enterprise in additional than forty industries that function within the Metropolis, it enforces its personal shopper safety legal guidelines. New York Metropolis additionally has particular guidelines addressing gross sales practices within the used automotive trade as nicely.
“With this settlement, we’ve taken swift motion to carry these shady dealerships accountable” — NYC Mayor Eric Adams