Ex-dealer group VP is being sued for $216M in unprecedented FTC case

If the FTC is successful, every auto retail leader could become the new point of liability. (3 min. read)

Author

Marcus Amick
May 20, 2025

James Douvas

Thirty-year auto retail veteran James Douvas is in the thick of a federal lawsuit that could have far-reaching implications in the car business. 

The details: Douvas, a former VP with the Leader Automotive Group, is being sued for $216 million by the Federal Trade Commission (FTC) for allegations that he deceived consumers when heading the company’s U.S. operations.

  • The complaint alleges that Douvas deceived consumers about the price and availability of vehicles, and charged them for expensive add-ons without consent. 

  • It alleges that he tacked on unwanted junk fees to purchases, posted fake reviews, and failed to disclose that U.S. customers were buying cars imported from Canada, along with other unlawful conduct.

For context: In 2022, the FTC launched its investigation into Leader Auto Group, a U.S. division of the publicly traded Canadian retailer AutoCanada. 

  • At the time, Douvas was serving as VP of U.S. operations and the investigation was focused solely on the company.

  • But by mid-2023 Douvas was informed he’d be personally named in a $216 million lawsuit, alongside the company and its former executive chairman. 

  • Leader Auto Group ultimately settled for $20 million, but the FTC refiled against Douvas alone for the full $216 million.

What he’s saying: “Again, all allegations, and nothing proven. But the FTC, they do stuff a little bit different…What the FTC likes to do is, put you in a corner, come up with a number—and you pay it. Well, I can’t do that, I don’t have $216 million. I’m just a car guy.” 

Between the lines: The real controversy is the FTC’s attempt to hold a non-owner executive personally liable for the actions of dozens of general managers, finance managers, and salespeople across 17 franchises.

  • According to Douvas, the FTC’s claims hinge on a theory that he “approved all deals” (a stretch, given the group was selling 2,000 cars a month.)

  • He’s now fighting the case in federal court, warning that if the FTC’s suit succeeds, it could expose countless executives to personal liability simply for being in the chain of command.

What he’s saying: “That means the guy that’s running A&T, AutoNation, or Asbury—any VP, any general manager, any platform director, any president of a publicly or privately held dealership company could be liable also in the future.” 

Bottom line: If the FTC sets a new precedent, every auto retail leader could become a point of liability, regardless of ownership stake or operational control.

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