Auto dealer Napleton to pay $10 million to settle lawsuit over its illegal junk fees added to customers’ bills

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Napleton settles FTC lawsuit for $10 million

North American Automotive Services, Inc., also doing business as Ed Napleton Automotive Group agreed to pay $10 million to settle a lawsuit over its practice of inserting illegal junk fees into customers’ bills and discriminating against Black consumers.

The Federal Trade Commission (FTC) and the State of Illinois filed the complaint against the multistate auto dealer group.

According to the complaint, eight of Napleton’s dealerships and the general manager of its two dealerships in Illinois illegally added junk fees for unwanted “add-on” products such as payment for insurance and paint protection.

The FTC and the State of Illinois alleged that the dealerships often waited until the end of the negotiation process to insert junk fees into consumers’ purchase contracts. The dealerships often added junk fees even if consumers specifically declined the add-on products. In some instances, the dealerships falsely told consumers that the add-ons were free or a requirement to purchase or finance their vehicles.