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L.A. Dealer Group Pays $3.6 Million to Settle FTC Charges
Sage Automotive Group in Los Angeles has agree to pay customers more than $3.6 million to settle charges by the Federal Trade Commission that it used deceptive advertising, sales and financing practices.
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Sage Automotive Group in Los Angeles has agree to pay customers more than $3.6 million to settle charges by the Federal Trade Commission that it used deceptive advertising, sales and financing practices.
The agreement covers nine businesses that sold new and used Chevrolet, Hyundai, Infiniti, Kia, Mercedes-Benz, Nissan, Scion, Toyota brand vehicles. The deal must be approved by the U.S. District Court in Los Angeles.
The FTC says Sage preyed on financially distressed and non-English-speaking consumers by misrepresenting lease offers, falsely claiming the dealership would pay off balances due on trade-in vehicles, padding sales with unauthorized add-ons such as extended warranties and refusing to return a down payment or trade-in vehicle if a sale was canceled.
Sage Automotive says it fully cooperated with the FTC investigation but considers the commission’s allegations to be overreaching and without merit. The company insists it has “always met its regulatory responsibilities.”
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