More than $9.8 million dollars in payments are on their way to consumers harmed by an automotive dealership group's junk fees and discriminatory practices. It's a follow up to a story we brought you in April when the Federal Trade Commission announced it had fined Illinois-based Napleton Automotive Group a record-setting $10 million for harm to consumers via junk fees and discriminatory practices.
In mid-November, the FTC announced it was sending 66,335 cash checks to consumers harmed by Napleton Automotive Group's practices. They average $147 each and recipients should receive them within 90 days. Consumers with questions about their refund should call the administrator, Epiq, at 1-888-691-6050. Note, the FTC never requires people to pay money or provide account information to get a refund.
Last spring, the FTC announced that Napleton Automotive Group would pay $10 million to settle a lawsuit jointly by the FTC and the State of Illinois. The two entities jointly sued Napleton in March 2022, alleging that Napleton employees were sneaking illegal junk fees for unwanted “add-ons” onto vehicle purchases and discriminating against Black consumers. According to the joint complaint, eight of the company’s dealership illegally tacked on junk fees for unwanted “add-on” products such as payment insurance and paint protection, costing consumers hundreds or even thousands of dollars. The complaint also alleged that Napleton discriminated against Black consumers by charging them more for add-ons and financing.
This is the latest refund to consumers stemming from an FTC action. If you'd like to see a state-by-state breakdown of all FTC case refunds, click here. The FTC says in 2021, Commission actions led to more than $472 million in refunds to consumers across the country, but these refunds were the result of cases resolved before the U.S. Supreme Court ruled in 2021 that the Commission lacks authority under Section 13(b) to seek monetary relief in federal court. Because of that ruling, the Commission no longer has its strongest tool to return money to consumers, and it will become harder to provide refunds to consumers harmed by deceptive and unfair conduct. In April 2021, the Commission asked Congress to restore its ability to get money back for consumers.
The Federal Trade Commission works to promote competition and protect and educate consumers. Report fraud, scams, and bad business practices at ReportFraud.ftc.gov.
Graphic Credit: Scott Maxwell LuMaxArt/Shutterstock.com.