Recent Federal Trade Commission enforcement actions and also cases by attorneys general in several states against car dealers remain focused on advertising and sales practices.
Most recently, a settled case in Pennsylvania shone a spotlight on auto repair services.
Background: Pennsylvania Attorney General Dave Sunday recently announced a $215,000 settlement with Mavis Tire Supply, LLC.
The complaint filed by the AG alleges that Mavis:
Advertised goods and services that it did not intend to sell.
Engaged in deceptive conduct.
Made misleading statements about necessary car repairs.
Failed to remedy, at no cost, work that was not performed in a skilled manner.
Charging for repairs not performed.
Additional terms: Along with the $215,000 in monetary relief, Mavis has agreed to provide training to make sure its employees comply with the law.
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Mavis denies claims: In the settlement, Mavis, which has more than 30 locations in Pennsylvania, denied the state’s claims of engaging in unfair or deceptive practices.
It also contended that it followed operational standards and that, if any of the alleged conduct occurred, it was by “employees who failed to follow Mavis’ established policies.”
Mavis claimed it entered the Assurance of Voluntary Compliance to avoid the protracted litigation.
What they’re saying: “Consumers put their trust in mechanics and car repair companies to provide reliable advice and services,” Attorney General Sunday said in a press release. “This settlement will return money to consumers who paid for services they did not need or want. Anyone who has not yet filed a claim and believes they were a victim of these practices should file a complaint as soon as they can.”
Bottom line: The case points out that businesses, including dealers, must comply with the advertising and fair practices for the services they provide as well as the products they sell, especially since failure to comply can be the result of just one employee’s actions.
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