In a recent consumer protection case, AutoNation, Inc., one of the nation's biggest car sales companies, has agreed to pay $650,000 to settle allegations concerning the sale of used vehicles in California, as announced by San Francisco District Attorney Brooke Jenkins. The lawsuit, which was a joint effort led by Jenkins and the District Attorneys of Santa Clara, Sonoma, Los Angeles, Ventura, and Riverside Counties, pointed out the company's failure to properly transfer registration and ownership paperwork within the stipulated time frame, according to the San Francisco District District Attorney's Office.
The crux of the complaint revolved around a failure by the 42 AutoNation subsidiaries involved to adequately comply with California laws, which mandate dealers to process transfer registrations to new buyers within 30 days of a vehicle's sale. "California consumers deserve to know that, when they purchase a car from a licensed dealer, all the transfer paperwork will be submitted in a timely fashion," District Attorney Brooke Jenkins said, as per the San Francisco District District Attorney's Office. The dealerships under scrutiny were quick to respond and took steps to quickly improve their compliance with these consumer protection laws, as noted by the same announcement.
In the absence of an admission of liability, AutoNation's settlement includes payments of $450,000 in civil penalties, alongside $150,000 covering investigative costs and an additional $50,000 earmarked to support statewide consumer protection programs. This marks a move towards rectifying the compliance issues that had surfaced during the investigation by the District Attorneys.
Under the settlement terms, the AutoNation dealerships must strictly create and implement policies to ensure consumers receive their registration and ownership documents promptly. These measures include putting a "stop" on the sale of used vehicles if title possession or a clear path to obtainment cannot be guaranteed within 30 days and having at least 10 employees dedicated to processing these ownership transfers at all times. An upper-level executive, at minimum a regional manager, is to be held accountable for overseeing these compliance policies, providing more reassurance to consumers moving forward.
