Attorney General Neronha reaches settlement with Rhode Island car dealerships totaling more than $1M

PROVIDENCE, R.I. (WLNE) — Attorney General Peter F. Neronha announced today that his has reached a settlement agreement with the owners of six car dealerships located in East Greenwich, Middletown, Narragansett, and Westerly for alleged deceptive sales practices.

As a result, the dealerships will pay more than $1 million between refunds to customers and payments to the State.

In a statement, Neronha said:

“Today’s settlement is another strong step forward in our Office’s fight to promote a fair, transparent, and competitive marketplace for all consumers, workers, and businesses. Rhode Islanders should be able to trust that that price they see at the beginning of a transaction is the price they end up paying at the end. And businesses should compete and succeed based on their ability to offer the best products, service, and price rather than on how creatively they can tack on fees. This settlement will return hundreds of thousands of dollars to Rhode Island auto consumers while making sure motor vehicle dealers play by the rules. And until every business competes fairly and openly for business, my Office will continue to prioritize protecting Rhode Islanders from having to bear the cost of deceptive sales practices.”

According to a release, the dealers will pay more than $1 million, including $874,958 in refunds to thousands of affected consumers.

Each consumer who paid this fee since January 1, 2021 will receive between $53 and $83– or approximately the profit each dealer made on the sale of the warranties –while also retaining the benefit of the warranty. Consumers will receive their checks approximately 60 days after the settlement is approved by the court.