News & Analysis as of

Race Discrimination Car Dealerships

Troutman Pepper

FTC and Arizona AG Reach $2.6 Million Settlement with Motor Vehicle Dealer Over Alleged Deceptive and Discriminatory Sales and...

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Last week, the Federal Trade Commission (FTC) and the State of Arizona announced a joint action against Coulter Motor Company, an Arizona-based motor vehicle dealership, and its former general manager, for allegedly engaging...more

BakerHostetler

FTC Not Kidding that Discrimination Violates Section 5

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We all know that discrimination violates various federal and state laws, but the FTC has been insisting for a while now that it also violates Section 5. A recent joint complaint the agency brought with the State of Wisconsin...more

Troutman Pepper

FTC and Wisconsin DOJ Settle with Auto Group over Alleged Illegal Add-Ons and Discrimination Against American Indian Consumers

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On October 24, the Federal Trade Commission (FTC) and the Wisconsin Department of Justice announced a settlement with Wisconsin auto dealer group Rhinelander Auto Center, Inc. (Rhinelander), its current and former owners, and...more

Hudson Cook, LLP

FTC Fines Wisconsin-Area Auto Group $1.1 Million for Unfair, Deceptive, and Discriminatory Sales Practices.

Hudson Cook, LLP on

Without admitting any wrongdoing, a Wisconsin-area auto dealer group settled a lawsuit brought by the FTC alleging it violated the Federal Trade Commission Act and Equal Credit Opportunity Act by charging American Indian...more

Sheppard Mullin Richter & Hampton LLP

FTC Imposes Record-Setting $10M Fine Against Multistate Auto Dealer, Settling Charges of Racial Discrimination and Unauthorized...

On March 31, the FTC and Illinois State Attorney General announced a settlement of charges against a large, multistate auto dealer that allegedly discriminated against black consumers and included illegal junk fees for...more

BakerHostetler

The Rubber Hits the Road to the Tune of $10 Million - FTC and Illinois Sue an Auto Dealership

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Not many people enjoy sitting in a car dealership spending hours evaluating or making a costly purchase, but it’s far more frustrating when the dealership allegedly engages in practices that face the ire of law enforcement. ...more

Hudson Cook, LLP

FTC Announces Settlement with Multistate Auto Dealership and General Manager Over Alleged Unauthorized Charges for Optional...

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HIGHLIGHTS: The Federal Trade Commission (FTC), jointly with Illinois, announced a $10 million resolution of allegations that a multistate auto dealership group and General Manager violated the FTC Act, Equal Credit...more

Hudson Cook, LLP

Navigating the Minefields When Offering a Credit Customer the "Lowest Rate"

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Every day, financing providers offer financing to customers. Sometimes they encourage a customer to apply for credit with the dealer by saying that they can offer the customer the best financing deal. Such a claim got a Ford...more

Hudson Cook, LLP

The FTC, Auto Dealers, and Credit Discrimination: What's Next?

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We have looked at the Federal Trade Commission's sweeping case against Bronx Honda and its general manager. Was this case part of a concerted effort by the FTC to ferret out illegal credit discrimination by automobile...more

Ballard Spahr LLP

DOJ Settles ECOA Claims Against Used Maryland Car Dealership

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The Department of Justice recently announced that it had settled a lawsuit filed in 2019 that alleged a Maryland used car dealership discriminated against African Americans in violation of the Equal Credit Opportunity Act by...more

Hudson Cook, LLP

FTC Nails Bronx Honda and General Manager for Discrimination and Deception

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The Federal Trade Commission made a big splash in late May when it announced a whopping $1.5 million settlement with Liberty Chevrolet, d/b/a Bronx Honda, and its general manager, Carlo Fittanto. Bronx Honda and Fittanto were...more

Bradley Arant Boult Cummings LLP

Proposed American Bar Association Resolution Could Affect Auto Dealers

The American Bar Association’s (ABA) Civil Rights and Social Justice Section, State and Local Government Law Section, and Commission on Homelessness and Poverty has proposed a resolution affecting automobile dealers that will...more

U.S. Equal Employment Opportunity Commission...

OnSite Solutions to Pay $50,000 to Settle Race Discrimination Charges

Manager Replaced Black Workers With Whites and Hispanics In Order to "Sprinkle a Little Salt," Federal Agency Charged - OKLAHOMA CITY - Automobile detailing business OnSite Solutions, LLC will pay $50,000 to settle a...more

Dorsey & Whitney LLP

Why Does the CFPB Want to Curb Auto Lenders’ Discretion to Charge Higher or Lower Interest Rates?

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On July 14, 2015, the Consumer Financial Protection Bureau (“CFPB”) and Department of Justice (“DOJ”) announced they had reached a “groundbreaking settlement” with American Honda Finance Corporation (“Honda”).(1) The...more

Proskauer Rose LLP

California Employment Law Notes - March 2015

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Employee Who Was Working Elsewhere During Medical Leave Of Absence Was Properly Terminated - Richey v. AutoNation, Inc., 182 Cal. Rptr. 3d 644 (Cal. S. Ct. 2015). Avery Richey worked for Power Toyota Cerritos,...more

Ballard Spahr LLP

Feds Obtain First-Ever Settlement over Allegedly Discriminatory ‘Buy Here, Pay Here’ Car Dealership Financing

Ballard Spahr LLP on

The U.S. Department of Justice (DOJ) and the North Carolina Department of Justice recently requested court approval of a consent decree arising out of alleged racial discrimination by two North Carolina car dealerships in...more

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