Information and Alerts

Government Action: BBB reports on known government actions involving business’ marketplace conduct:

NYC Department of Consumer and Worker Protection Files Cases Against Two Used Car Dealerships

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.

On 11/03/2021, the NYC Department of Consumer and Worker Protection (DCWP) Commissioner Peter A. Hatch announced cases against two used car dealership companies— JF Motors, which operates a total of three dealerships in Queens—for engaging in deceptive and unlawful trade practices that preyed on vulnerable New Yorkers, as well as consumers from across the tristate area. DCWP’s cases, which will be heard at the City’s Office of Administrative Trials and Hearings (OATH), allege thousands of violations, including violations of the City’s new laws and rules designed to prevent predatory conduct by the industry.

The case against JF Motors includes Automania, Luxury Automotive Club, and the now-closed World Auto, all of which are in Queens. DCWP is charging the JF Motors family of dealerships with more than 9,000 violations and seeking more than $100,000 in restitution for nine consumers, civil penalties, and revocation of its two remaining licenses. DCWP is also seeking to hold the respective owners personally liable for the violations.

The dealerships’ unlawful conduct includes:

-Using False Advertising to Lure Consumers and Charging More Than Advertised
Both companies used deceptive advertising to lure customers to their dealerships and then illegally sold cars at prices well above the advertised prices.

JF Motors’ dealerships frequently marketed their cars as “Certified Pre-owned” by the National Independent Automobile Dealers Association (NIADA) even though JF Motors did not conduct the required 125-point inspection, give buyers the promised 10-year/100,000 warranty, or provide the vehicle history report for each vehicle. JF Motors inflated prices by adding fake fees, even charging consumers a fee for the fake NIADA certification.

-Conducting Other Illegal Activity
The JF Motors dealerships used illegal contracts, required consumers to buy service contracts that either did not exist or had less coverage than promised, overcharged out-of-state buyers for title and registration fees, and failed to provide contracts and other documents to consumers in Spanish even though the deal was negotiated in Spanish.

DCWP’s cases are being handled by Senior Staff Counsel Bradley McCormick and Staff Counsel Mark Butler, under the supervision of Associate General Counsel Adam Blumenkrantz of the General Counsel Division, which is led by General Counsel Tamala Boyd and Deputy General Counsel Michael Tiger.