Grieco Automotive Group Dealerships Settle Deceptive Practices Claims
Three Grieco Automotive Group Dealerships Settle Deceptive Practices Claims
Three Grieco Automotive Group dealerships have reached an agreement to pay a combined total of $557,815 to consumers and the Rhode Island Office of the Attorney General. This settlement resolves claims of deceptive practices and was filed in Rhode Island Superior Court on July 26.
The agreement includes $457,815 in direct restitution to customers and $100,000 to cover the costs of the investigation and two lawsuits. Grieco Automotive Group has stated that the refund process will be seamless, with affected individuals automatically receiving checks.
Details of the Lawsuits
The settlement agreement resolves two lawsuits that were filed by Rhode Island Attorney General Peter Neronha in March 2022. The lawsuits alleged that Grieco Honda, Grieco Hyundai, and Grieco Toyota automatically charged customers for additional products that were not included in their advertisements. More than 6,000 customers reported being charged $249 for a paint and fabric spray and warranty product called Zurich Shield, which was not disclosed until they were in the purchase process. Grieco Automotive Group argues that the product was preinstalled and clearly disclosed on the itemized dealer invoice, but the Rhode Island Attorney General’s Office claims that customers were not given the option to opt out of the fee during the purchase process.
Reaction from Grieco Automotive Group
In a statement, Grieco Automotive Group expressed its satisfaction with resolving the issue and stated that it will continue to provide excellent service and quality vehicles to its customers. The group maintains that it does not agree with the attorney general’s findings but has agreed to amend certain trade practices without admitting to any violation of regulations. Grieco Automotive Group looks forward to selling and servicing quality vehicles in a consumer-friendly and professional atmosphere.
Additional Allegations and Provisions of the Agreement
The settlement agreement also alleged that the three Grieco stores violated the Deceptive Trade Practices Act by charging customers more for vehicles than the advertised price on their website. The agreement prohibits the dealerships from charging customers for products or services without their explicit informed consent. It also requires them to advertise vehicle prices that match their advertisements.
Grieco Automotive Group’s Response
Grieco Automotive Group stated that it voluntarily implemented many of the changes outlined in the agreement after the initial lawsuit was filed. While the group believes it has consistently complied with ethical business standards, it acknowledges the need to address the attorney general’s concerns. Grieco Automotive Group argues that an advertising company it hired was responsible for ensuring compliance with regulations.
About Grieco Automotive Group
The three dealerships involved in this settlement are part of Grieco Automotive Group, which also operates other stores selling Acura, BMW, Chevrolet, Ford, Mazda, Mercedes-Benz, and Nissan vehicles. Grieco Automotive Group has locations in California, Florida, Massachusetts, and Rhode Island. Mike Grieco Jr., CEO of Grieco Automotive Group, was recognized as a 2013 Automotive News 40 under 40 honoree.
Protecting Consumers from Unfair Practices
This settlement agreement reflects Rhode Island Attorney General Peter Neronha’s commitment to protecting retail automotive consumers from unfair and deceptive trade practices. Neronha’s office aims to prevent dealerships from refusing to honor prices listed on dealership websites and window stickers and to eliminate junk fees and unwanted add-on products.
