By SDCN Staff
Riverside, CA–A judge has ordered a network of automobile dealerships owned and operated as subsidiaries of AutoNation, Incorporated to pay $650,000 to resolve a consumer protection action related to the sale of used vehicles.
“Our office is committed to holding businesses accountable for any violations of consumer protection laws,” Riverside District Attorney Mike Hestrin said. “We will work diligently to ensure that consumers are treated fairly, and the laws are followed.”
The auto dealerships were accused of violating laws related to the timely transfer of registration and ownership of used cars. In California, used car dealers must submit to the Department of Motor Vehicles an application to transfer registration to a buyer within 30 days of the date of sale.
That same 30-day deadline applies to the certificate of ownership, known as a “pink slip”. These deadlines may be extended if the DMV returns an application to the dealer because it is missing information.
As part of the settlement, the 42 AutoNation dealership subsidiaries in California agreed to create and enforce policies to ensure that consumers receive registration and ownership paperwork promptly. These include placing a “stop” on the sale of used vehicles when they do not have a title in hand or a clear path to getting it within 30 days; requiring that before any sale, a smog check or Vehicle Identification Number verification is performed as necessary; deferring sales commissions on the sale of any used cars that are not capable of timely transfer; having at least 10 employees at all times to process ownership transfers; and ensuring that a designated employee at the level of regional manager or higher is responsible for overall compliance.
The $650,000 payment includes $450,000 in civil penalties, $150,000 in investigative costs, and $50,000 to support statewide consumer protection efforts. The case was brought by the District Attorney’s offices of Riverside, Los Angeles, San Francisco, Santa Clara, Sonoma, and Ventura Counties and was filed in Santa Clara County Superior Court.
The AutoNation dealerships resolved the action without admitting the allegations in the complaint, cooperated with the District Attorney’s Offices’ investigation, and quickly took steps to improve their compliance with the consumer protection laws brought to their attention by the prosecutors.
The stipulated final judgment was signed on February 25 by Santa Clara County Judge William Monahan.
The case was handled in Riverside County by Deputy District Attorney Evan Goldsmith of the DA’s Consumer Protection Team.
