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A DEALERSHIP found to have been in violation of strict car sales laws has been hit with a fine in excess of $800,000.
The dealership had been defrauding its customers for nearly a decade, and has now been hit with a massive fine and other punishments.
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Federal Auto Brokers, doing business as BM Motor Cars, was fined $842,776.24 for continued violations of state and federal consumer protection laws over nearly a decade, according to a statement from the New Jersey Attorney General’s office.
“The judgment against BM Motor Cars holds the dealership accountable for years of misrepresenting and failing to disclose the true condition and mileage of the vehicles they sold,” said Jeremy E. Hollander, Acting Director of the Division of Consumer Affairs.
“We will continue to demand honesty and fairness in the motor vehicle sales industry and put a stop to unlawful business practices that undermine consumers’ ability to make informed choices.”
Specific offenses include a failure to disclose critical information to customers, such as failing to provide copies off signed odometer disclosure statements and having customers sign illegal vehicle inspection waivers.
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The New Jersey dealer operating out of Linden has also been accused of hiding key pricing information from customers, such as the total prices of vehicles, and failing to identify “gray market vehicles,” which are imported cars that may not meet national safety and emissions standards.
The still-ongoing sale of these gray market vehicles, which effectively run the risk of not being street legal, was the subject of the 2018 consent order, and saw the dealer hit with a $55,899 fine.
All of these actions are in violation of either New Jersey’s Consumer Fraud Act and its regulations on motor vehicle sales, or a 2018 consent order BM Motor Cars previously agreed to with the state’s Division of Consumer Affairs.
The Superior Court of New Jersey found that the dealership committed 511 of the aforementioned violations within a two-month period.
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In light of the 2018 consent order and BM Motor Cars’ apparent disregard for it, the Superior Court justified the sizable fine by pointing to a “pattern of non-compliance and a lack of good faith and observance of fair dealing,” per court documents.
The fine itself is valued at $793,500, with the remainder accounted for by reimbursement to the state amounting to $49,276.24 to cover its legal and investigative costs into the matter.
“Dealers who repeatedly violate our consumer protection laws or Consent Orders prohibiting them from hiding information about vehicle history, safety, and pricing will face enforcement actions and significant penalties for their misconduct,” said Acting Attorney General Jennifer Davenport in a statement.
BM Motor Cars is also prohibited from engaging in further deceptive sales acts, and is being required to comply with all federal and state motor vehicle sales regulations.
BM Motor Cars did not immediately return The U.S. Sun’s request for comment.
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