Franchised Dealer in N.Y. Pays $1.5.M to Settle FTC Anti-Discrimination Suit

The Federal Trade Commission announced last week that a franchised auto dealer in New York had agreed to pay $1.5 million to settle charges that they discriminated against Black and Latino car buyers, among other “illegal business practices.” The dealership will also be required to establish a fair lending program and to limit the amount of additional interest charges they can pass on to buyers.

You may view the federal government’s full complaint against Bronx Honda at this link. You may also view a statement from FTC commissioner Rohit Chopra regarding the settlement and the evidence-gathering process here.

According to the FTC’s press release announcing the settlement, the franchised dealership committed several illegal advertising and sales violations, including changing agreed-upon sales prices in the middle of a sale, double-charging customers for taxes and fees, and failing to honor published sale prices.

The FTC, in conjunction with the Bronx District Attorney’s Office, also alleges that the dealership’s owners instructed sales personnel to specifically charge higher fees and financing charges to Black and Latino buyers, while explicitly not doing the same to white customers.

The accusations follow in the wake of a Justice Department lawsuit, filed last fall, that accused a used car dealership in Glen Burnie of committing unlawful lending discrimination against Black customers.

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