Eighty percent (83%) of buyers were charged junk fees for add-on products without their authorization or as a result of deception, according to a survey cited in the lawsuit.
The Napleton dealerships charged consumers hundreds or even thousands of dollars for unwanted add-on products. The company’s dealership in Arlinton Heights, Illinois charged a consumer almost $4,000 in add-on fees after paying a similar amount in down payment.
Additionally, the FTC and the State of Illinois alleged that the Napleton dealerships discriminated against Black consumers. When financing vehicle purchases of Black consumers, dealerships allegedly increased the amount of interest rate or sneaked in add-on products to their final contract. The dealerships allegedly charged Black consumers approximately $190 more interest rate and $99 more for similar add-ons than non-Latino White customers.
In a statement, FTC’s Bureau of Consumer Protection Director Samuel Levine said, “Working closely with the Illinois Attorney General, we are holding these dealerships accountable for discriminating against minority consumers and sneaking junk fees onto people’s bills. Especially as families struggle with rising car prices, dealerships that cheat their customers can expect to hear from us.”
