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In a final consent judgment reached in state court in Passaic County, Bergen Auto Enterprises, LLC — which does business as Wayne Mazda and Wayne Auto Mall Hyundai (collectively “Bergen Auto Enterprises”) — must also comply with the following:
- Undertake a search using a vehicle history service, to discern the prior use (i.e., rental) of a used motor vehicle advertised and/or offered for sale and to determine whether the used motor vehicle has been in an accident or otherwise sustained damage. Such information must be disclosed to consumers prior to the purchase of the used motor vehicle.
- In all advertisements of used motor vehicles, clearly and conspicuously disclose the prior use of the used motor vehicle, unless previously and exclusively owned or leased by individuals for their personal use; and further to clearly and conspicuously disclose whether a used motor vehicle had been previously damaged and that substantial repair or body work has been performed on it.
- Include in all advertisements the statement that “price(s) include(s) all costs to be paid by consumer, except for licensing costs, registration fees, and taxes.”
- In all advertisements, clearly and conspicuously disclose, next to a purported unconditional offer, all disclaimers, qualifiers or limitations that in fact limit, condition, or negate such offer.
- In all advertisements, clearly and conspicuously disclose the applicable time period of any special offer, unless such offer is a manufacturer’s program.
- Refrain from advertising a motor vehicle for sale or lease without possessing title to the motor vehicle.
Wayne Mazda and Wayne Auto Mall Hyundai are located on Route 23 in Wayne.
A five-count complaint by the Office of the Attorney General and Division of Consumer Affairs filed in August 2014 accused Bergen Auto Enterprises of violating the Consumer Fraud Act and Motor Vehicle Advertising Regulations, among other things, by engaging in “bait and switch” tactics by featuring motor vehicles in advertisements that were not actually available for purchase or lease, Hoffman said.
The dealerships also “failed to disclose to customers that some used motor vehicles had previously been used as rental vehicles and/or had sustained significant prior damage,” the attorney general alleged.
“”Purchasing a new or used motor vehicle can be a very intimidating process for consumers,” Hoffman said. “This settlement ensures that Bergen Auto Enterprises will make all appropriate disclosures in advertisements and otherwise.”
Bergen Auto Enterprises’ payment is comprised of a civil penalty of $109,595.45 and $25,404.54 for reimbursement of the state’s attorneys’ fees and costs.
The settlement also includes a $50,000 suspended civil penalty, which will be vacated after one year if Bergen Auto Enterprises fully complies with the consent judgment’s terms.
Investigators Donna Leslie and Cullen Church, of the Division of Consumer Affairs Office of Consumer Protection, and Joseph Singh, formerly a Supervising Investigator, conducted the investigation.
Deputy Attorney General Erin M. Greene, in the Consumer Fraud Prosecution Section of the Division of Law, represented the state.
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