Unfair Practices at Darcars Honda
Currently, Maryland Attorney General Anthony Brown has set a massive sum to receive from Darcars Honda. Through this settlement, customers will be refunded up to several million dollars as a way of compensating for the damages caused to them by the dealership. It is still unsure about the total, but it can be stated that the dealership used many manipulations in its operations. Thus, the government alleged that the dealership submitted ‘unfair and deceptive trade practices’ that affected consumers’ interest.
What Went Wrong?
A challenge was that the Darcars Honda sold cars at a 2% ‘sales commission,’ which in fact was not a commission. And this fee was quite unlawful according to the laws of Maryland. In addition to that, through the exclusion of markups and added equipment, the dealership also advertised the vehicles for sale at cheaper prices than the actual cost of the cars. This mere deception made many customers to fall into the trap.
Moreover, Darcars Honda stated that the business engaged in the addition of various unwanted equipment and products to the sales transactions without customers’ consent. The legal bodies, as represented by the Attorney General’s Office, established that the dealership was in breach of the law to do with the disclosure of processing fees and also did not put the allowed “price statement” on every new vehicle that the dealership was displaying for sale.
Impact on Consumers
These practices significantly affected consumers. Once again, to either ‘negotiate’ or pass adequate information or price list, selling vouchers, contracts, receipts and any other related working papers attached to the relevant sales transactions failed to contain itemized breakdowns of the displayed products. One of them was taking tens of thousands of dollars to buy a number of items and being charged a commission of 600 dollars which I only saw in the papers after we left the store. I asked to have the form that they use to display the costs in their stores; they said no because it is a policy that they cannot allow me to have it.
Settlement and Its Implications
It prohibits Darcars Honda from using such practices in future and requires the recovery of funds for the affected customers. Furthermore, the dealer has offered to make a contribution to the Executive Head of the Attorney General’s Office amounting to $3 million. In a statement, Brown stated that car is one of the biggest assets, which when purchased, one spends a lot of money on. Therefore, Marylanders should not be charged even higher due to such an unlawful business strategy by a dealer.
This settlement is a clear indication of the Attorney General’s Office’s aim at preventing unfair business conducts. To my thinking, this is a good move in ensuring that the automotive industry becomes fair much as it becomes more open.
My Personal Opinion
To a certain extent, the settlement also helps to remind consumers and they should carefully read these documents every time they are in such important purchases. It is quite disheartening to read such reports, but I am pleased that the Attorney General’s Office has done something against Darcars Honda.
End Note
This case reveals why it is necessary to have some regulations that shall guard the consumers. Buyers should always be alert and ask for any segment of a purchase that he or she finds ambiguous or uncomfortable. I just hope that it brings some relief to the customers and is also capable of setting a precedence to discourage such practices in the other car dealership companies.
