FTC, State of Arizona Take Action Against Coulter Motor Company for Deceptive Pricing and Discriminatory Practices
FTC and Arizona AG charged dealership and key employee with using bogus online pricing to entice consumers, tacking on thousands in junk fees, and charging Latino consumers extra
The Federal Trade Commission and State of Arizona are taking action against Arizona-based Coulter Motor Company for engaging in a wide array of practices that harm consumers, from deceptive online vehicle pricing to charging Latino car buyers more in interest and add-on products. Coulter, along with its former general manager, Gregory Depaola, will pay $2.6 million to settle the lawsuit, most of which will go to provide refunds to consumers harmed by defendants’ allegedly unlawful actions.
In the complaint announced today, the FTC and State of Arizona allege that Coulter, which operates Coulter Cadillac Tempe and Tempe Buick GMC, along with Depaola, regularly charged consumers for unwanted add-ons that consumers never agreed to pay and other bogus fees. A survey of consumers who purchased or leased cars from Coulter found that 92 percent of the consumers surveyed were charged for at least one add-on without their authorization, or that they thought was required.
“Coulter used junk fees and other illegal tactics to drive up prices for consumers, especially Latino consumers,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC will continue cracking down on practices that drive up prices, cheat consumers, and undercut honest sellers.”