Consumers who have shopped for cars at various dealerships in Illinois are potentially on the cusp of receiving settlement payments, following a $20 million agreement to resolve accusations of customer fraud. The deal is a consequence of an inquiry by Illinois Attorney General Kwame Raoul and the Federal Trade Commission into the operations of Leader Automotive Group and its parent company, AutoCanada. According to a WGN-TV report, the lawsuit alleged that Leader Automotive Group deceived consumers concerning vehicle pricing and availability, appended unwarranted fees and failed to properly inform customers about vehicles imported from Canada among other illicit practices.
"This dealership network engaged in bait-and-switch tactics by luring consumers into their dealerships with lower prices only to either require consumers to purchase allegedly pre-installed add-on products or charge consumers for those products without their knowledge or permission," Raoul was quoted in a statement. As part of the settlement agreement, Leader Automotive Group must now clearly disclose the true prices of vehicles and seek explicit consent from buyers for any additional charges. The affected dealerships span locations in Bloomington and Peoria, with highlights including Bloomington Normal Auto Mall and Autohaus Motors.
The investigation carried out by state and federal officials revealed a pattern of deceptive practices designed to unfairly lure and financially disadvantage customers seeking to purchase automobiles. The allegations included tacking on fees for products that were not actually installed, as well as cultivating a misleading online reputation with fabricated reviews, as outlined by the Chicago Sun-Times. Such actions led to this substantial settlement, of which the purpose is to not only penalize the dealership groups but to also provide monetary relief to customers who were impacted by these unethical sales techniques.
"Working closely with the Illinois attorney general, we are holding these dealerships accountable for unlawfully extracting millions of dollars from consumers through a textbook bait-and-switch scheme, and bolstering their poor reputation with fake reviews," Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said according to the Sun-Times. With Leader required to comply with newly set forth directives that mandate transparency in their dealing, the aim is to ensure a fairer motor vehicle market for all in Illinois. Additionally, it hopes to level the playing field for honest dealers who are forced to compete against such deceptive business models.
The dealerships acknowledged by the settlement include not only those under Bloomington Normal Auto Mall and Autohaus Motors but incorporate other Illinois-based outlets like North City Honda and Toyota of Lincolnwood.
