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Honda Dealer Settles Consumer Case For $1.37 Million

LOS ANGELES -- Honda of Santa Monica has agreed to pay $1.37 million in civil penalties and cease engaging in deceptive practices as part of a settlement of a lawsuit, the district attorney's office announced Monday.

The civil action was filed by the district attorney's office. It alleged that the dealership made false or misleading statements in contracts pertaining to the price of an anti-theft "aftermarket" product included with vehicles sold or leased.

The product usually consists of an etch in the vehicle windshield that helps police find stolen vehicles and vehicle parts, said Deputy District Attorney Dana Aratani. While the product cost the dealership about $38 to install in each vehicle, consumers were charged anywhere from $300 to $1,000, Aratani said.

The prosecutor said he was pleased with the outcome.

"We think it's a good settlement for consumers and hopefully it will have an impact in the car industry itself," Aratani said.

The settlement money includes $829,000 in restitution to consumers from Los Angeles County and another $548,000 to the district attorney's office for its costs in conducting the investigation and litigation, said Thomas Papageorge, head prosecutor of the Consumer Protection Division of the district attorney's office.

The dealership also will set up a program for other consumers who also may be entitled to restitution, the district attorney's office stated. The company, owned by Kramer Motors Inc. of Charlotte, N.C., admitted to no wrongdoing in the settlement.

The judgment was filed Friday in Los Angeles Superior Court, according to the district attorney's office.

Lil4X

(GASP!) They've discoverd a dishonest auto dealer?? We are truly in a "ratings period".

mmarshall

Double GASP ! A dishonest HONDA dealership? What is the world coming to?

Seriously, I know not all of the people in Honda dealers are crooks but it seems like they proliferate there more than just about any other Japanese nameplate, ( although Mitsubishi has had their share at high levels ).

One local Honda dealer, not far from my house, was raided and shut down for a while by FBI agents when undercover guys posed as drug dealers and the salespeople were willing to accept drug money for cars. ( Shades of John DeLorean here? ) Their position was they didn't care where the money came from....that was not their concern. The FBI saw it differently. Instead of just screwing on license plates, a sales manager and some salespeople ended up making them instead.