Pennsylvania Consumers to Receive Refund from Vehicle Dealership that Sold Valueless Warranties

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IIG Managing Partner pleads guilty to Ponzi-like scheme

Paxton Associates, a motor vehicle dealership doing business as Faulkner Honda in Harrisburg, agreed to settle the charges against it by the Pennsylvania Attorney General’s office.

Attorney General Josh Shapiro alleged that Faulkner Honda violated the Pennsylvania Consumer Protection Law and the Automotive Industry Trade Practices by engaging in deceptive and unfair sales practices. The dealership allegedly tricked consumers into buying valueless warranties for their new or leased Honda vehicles.

Based on the investigation by the Attorney General’s Bureau of Consumer Protection, the dealership did not disclose that a manufacturer’s warranty is already included in the advertised purchase price for Honda vehicles. Consumers paid around $1,000 on average for these warranties that have no meaningful value beyond the manufacturer’s warranty.

In a statement, Shapiro said, “This dealership took its customers for a ride by encouraging them to purchase an additional warranty that had no value. My office is fighting to ensure that consumers are able to make informed purchases and protect against deceptive sales tactics, which bilk customers out of their hard earned money.”