1. Attachments are working again! Check out this thread for more details and to report any other bugs.

Featured “Misleading Promotions and Fraudulent Sales Tactics”

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by ftl, Jul 14, 2015.

  1. ftl

    ftl Explicator

    Joined:
    Jun 2, 2009
    1,812
    790
    0
    Location:
    Long Island NY
    Vehicle:
    2012 Prius c
    Model:
    Three
    According to an official announcement today by New York State Attorney General Eric Schneiderman, a dealership group on Long Island, NY (which includes the Toyota dealer where I get my car serviced, but not the one where I bought it), has just settled with his office for $310,000 to resolve false advertising claims.
    A.G. Schneiderman Announces Settlement With Atlantic Auto Group Over Misleading Advertising And Sales Practices Across 22 Dealerships On Long Island | www.ag.ny.gov

    Some extracts:

    In total, the Attorney General’s Nassau and Suffolk Regional Offices received more than 250 complaints regarding the dealerships and their advertising and sales practices. The AG said that the dealerships "persistently defrauded consumers with misleading promotions and fraudulent sales tactics."

    According to the announcement, the group:

    Ran a scratch-card promotion in which the game cards were deceptive and had the capacity to mislead consumers to believe that they were guaranteed winners of valuable prizes. In fact, virtually all of the consumers did not win a prize at all.


    Obtained signatures on contracts of sale and financing agreements from consumers who believed that they were filling out paperwork for vehicles they had won in the card promotions.

    Published print advertisements in Newsday containing "misleading or illegal features" in violation of state guidelines and after two stores in the group had agreed in February with Schneiderman not to violate those guidelines.



    Offered false discounts on vehicles by selling them at a high price that effectively nullified the discount.


    Charged for extended warranties, vehicle maintenance contracts and administrative fees that consumers did not want, had no knowledge of or were told they were free.


    Provided consumers with blank or partially blank documents for their signatures and later filled out the documents with figures and terms other than what was agreed upon by the consumers.


    Failed to give all necessary documents to consumers at the time of purchase.


    Made various false or misleading statements to consumers during high-pressure sales transactions.


    Encouraged consumers to apply for loans that they could not afford.


    Refused to refund deposits.
     
  2. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    107,960
    49,075
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    wow. until now, i did not think it was possible for dealerships to sink any lower than sop. i hope customers freeze them out and mfg.'s. consider looking elsewhere.
     
  3. Blizzard_Persona

    Blizzard_Persona Senior Member

    Joined:
    Nov 2, 2014
    1,787
    944
    0
    Location:
    Pa.
    Vehicle:
    2023 Prius Prime
    Model:
    XSE
  4. energyandair

    energyandair Active Member

    Joined:
    Jun 9, 2009
    905
    339
    0
    Location:
    Victoria BC Canada
    Vehicle:
    2010 Prius
    Less than $15,000 per dealership.

    It's not much of a deterrent! I wouldn't hold my breath for better behaviour.
     
  5. Mendel Leisk

    Mendel Leisk Senior Member

    Joined:
    Oct 17, 2010
    54,835
    38,325
    80
    Location:
    Greater Vancouver, British Columbia, Canada
    Vehicle:
    2010 Prius
    Model:
    Touring
    When buying our Prius "our" dealership rewrote the contact, and in the process changed "documentation charge" from "no charge" to $295. AND got testy when I called them on it.

    Always willing to give 'em free advert, this was:

    Port Moody Open Road Toyota
     
  6. orenji

    orenji Senior Member

    Joined:
    Aug 17, 2013
    5,884
    3,486
    0
    Vehicle:
    2010 Prius
    Model:
    Three
    Had a dealership try to screw me on a trade (Non-Toyota dealer). As I was in finance and signing off on forms, I noticed that when the crook was entering the information in the computer he noted that my trade in was not part of the deal with the purchase of a new car. This after spending a few hours there negotiating on the trade in. I asked the crook about this and he said that it was not legal to include the trade in with the purchase on the same contract. I told him that I have never heard of this and told him to keep the new car. Called the 2nd dealer I was working with and explained the situation to them and they also had no idea what this other dealer was doing. Bought a new car and traded in my old one at the 2nd dealer. The 1st dealer was hoping I would buy the car, and they would more than likely back out on the trade! It is sad that buying a new car is such a challenge and dealerships and employees of dealers take all the joy out of it!
     
    Andyprius1 likes this.
  7. Beachbummm

    Beachbummm Senior Member

    Joined:
    Sep 12, 2013
    1,160
    392
    0
    Location:
    Florida
    Vehicle:
    2008 Prius
    Model:
    Five
    I get 5 of the scratch cards a week from dealerships...I just toss them...its all a scam like the S.African lottery e mails
     
    bwilson4web likes this.
  8. hill

    hill High Fiber Member

    Joined:
    Jun 23, 2005
    19,728
    8,092
    54
    Location:
    Montana & Nashville, TN
    Vehicle:
    2018 Chevy Volt
    Model:
    Premium
    The irony? Tesla's business model breaks their mold, and so what do they do? Dealerships tried to force 'em out of several states.
    .
     
  9. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    107,960
    49,075
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    of course, people should be screaming at their legislators, but like everything else, they'll be confused by the onslaught of fud from the dealers lobby.
     
  10. The Electric Me

    The Electric Me Go Speed Go!

    Joined:
    May 22, 2009
    9,083
    5,798
    0
    Location:
    Undisclosed Location
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    Given the severity of some of those claims $310,000 damages or settlement, seems like peanuts.
     
    bisco likes this.
  11. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    107,960
    49,075
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    agreed. anyone remember when we had a member here, who, every time you said something truthful about a dealer, he'd work up a sweat telling you how it's all baloney, and how difficult the business is, and how they barely make enough money to stay open?
     
  12. SageBrush

    SageBrush Senior Member

    Joined:
    Jun 4, 2008
    11,627
    2,530
    8
    Location:
    Southwest Colorado
    Vehicle:
    2012 Prius v wagon
    Model:
    Two
    NO ?!?

    Hard to believe
     
  13. The Electric Me

    The Electric Me Go Speed Go!

    Joined:
    May 22, 2009
    9,083
    5,798
    0
    Location:
    Undisclosed Location
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    The infractions really vary.

    Scratch Offs? Probably NOT as big a deal.

    Obtaining signatures on unfilled documents and filling in terms later that the consumer didn't agree to?
    That's worse than perhaps a misleading scratch off ticket designed to simply get the person in the dealership.
     
  14. SageBrush

    SageBrush Senior Member

    Joined:
    Jun 4, 2008
    11,627
    2,530
    8
    Location:
    Southwest Colorado
    Vehicle:
    2012 Prius v wagon
    Model:
    Two
    With all respect due to the consumer, any idiot who signs a blank check is giving permission to the counter-party to write in whatever amount they please.

    NO ?!?

    Outrageous
    Unheard of
    Why, the nerve !
     
    #14 SageBrush, Jul 14, 2015
    Last edited by a moderator: Jul 14, 2015
  15. The Electric Me

    The Electric Me Go Speed Go!

    Joined:
    May 22, 2009
    9,083
    5,798
    0
    Location:
    Undisclosed Location
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    Yes, but that still doesn't make it OK.
    You still need to try and protect the consumer, and if the dealership is practicing this action, it is illegal and fraudulent.

    For older people, or even most people, buying a vehicle and signing contracts and paperwork is probably something the don't do everyday. Really easy to mislead people into signing things when sitting in an office and being handed a stack of various papers.

    Even if people shouldn't trust the dealership, and should know better, that's really not the point. Dealerships shouldn't be allowed to operate in a criminally fraudulent manner.
     
    HybridBull likes this.
  16. SageBrush

    SageBrush Senior Member

    Joined:
    Jun 4, 2008
    11,627
    2,530
    8
    Location:
    Southwest Colorado
    Vehicle:
    2012 Prius v wagon
    Model:
    Two
    Signing a blank check is neither illegal or fraudulent. Filling in the amount of a signed blank check by the intended counter party is neither illegal or fraudulent.

    Taking advantage of a stupid or poorly informed consumer is neither illegal or fraudulent. You may wish to avoid that dealership because you find their ethical practices objectionable, but do not confuse your (fair) opinion with legality. The NYS office is playing politics.
     
  17. Beachbummm

    Beachbummm Senior Member

    Joined:
    Sep 12, 2013
    1,160
    392
    0
    Location:
    Florida
    Vehicle:
    2008 Prius
    Model:
    Five
    just like when they make you sign the SOLD AS IS paperwork..might as well flush your money down the toilet..you have no rights when you sign on the dotted line
     
  18. SageBrush

    SageBrush Senior Member

    Joined:
    Jun 4, 2008
    11,627
    2,530
    8
    Location:
    Southwest Colorado
    Vehicle:
    2012 Prius v wagon
    Model:
    Two
    First, no one "made you" do anything. It is your obligation to read the contract and decide if you agree to the provisions.

    Second, consumer law has has what is called (I think) implied merchantability. I know that it applies to new stuff, not sure about used. The idea is that the contract implicitly includes basic guarantees, such as the thing is not DOA.
     
  19. The Electric Me

    The Electric Me Go Speed Go!

    Joined:
    May 22, 2009
    9,083
    5,798
    0
    Location:
    Undisclosed Location
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    Oh come on Sage...

    If the dealerships are putting partially filled contracts in front of people and having them sign them, only to fill out amounts and details later? That's fraudulent.
    I mean you can bet it's not an action of convenience, they aren't filling out the contracts to be exactly what they told the consumer it was going to be just because the printer ran out of ink.

    YES...should people never sign a blank or partially filled document? Sure.

    But the impetus is on the dealerships being ethical enough to NOT lure unsuspecting people into providing signatures to 1/2 filled or blank document that they later fill out to become something the intended signer was not aware of or expecting.
     
    #19 The Electric Me, Jul 14, 2015
    Last edited: Jul 14, 2015
  20. Trollbait

    Trollbait It's a D&D thing

    Joined:
    Feb 7, 2006
    21,809
    11,368
    0
    Location:
    eastern Pennsylvania
    Vehicle:
    Other Non-Hybrid
    I think the situation was that they were told they are signing a check for the money(car) they won, and later finding out it was actually how much they agreed to pay for the 'prize'.

    The contracts weren't blank. The dealer mislead the customer on what it was a contract for.

    Customers should read before signing, but that doesn't mean the other party can flat out lie.