Written by Judy Godoy
WASHINGTON (Reuters) – The U.S. Federal Trade Commission sued Asprey Automotive Group Inc. on Friday, alleging that three of its Texas dealerships charged black and Latino customers higher prices than others and routinely added services to customers’ contracts without their consent.
Up to 75% of David McDavid Ford (NYSE:) dealership clients in Fort Worth, Honda The Federal Trade Commission said dealerships in Irving and Frisco, Texas, reported being charged without their permission for services such as protective coatings, service contracts and insurance.
In some cases, customers declined the services or were falsely told they were mandatory, while in other cases their permission was never asked, according to the FTC.
The FTC said auto dealerships charged an average of $298 more to black customers and $214 more to Latino customers for the same add-on products than non-Hispanic white customers.
Asbury said it disputes the claim and will appeal the lawsuit. In a statement, it denied that minority customers are charged more for protection products than other customers.
The company said it confirmed through a Freedom of Information Act request that the Federal Trade Commission received no consumer complaints about McDavid agencies between 2019 and late spring 2024.
“We will not allow the FTC to force us to pay fines or subject us to burdensome requirements that negatively impact our customers’ car buying experience, will not apply to others, and will put us at a competitive disadvantage in the industry,” CEO David Holt said in a statement.
Asbury operates more than 155 agencies in more than a dozen states.
All five FTC commissioners voted to approve the case against Asbury, though Andrew Ferguson, one of the two Republican commissioners, objected to using a separate case settled Thursday against a different agency to classify discrimination as an unfair business practice.
Federal Trade Commission Chair Lina Khan and Democratic commissioners said Thursday that exempting discriminatory conduct from unfair practices would give companies that discriminate a chance.
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