AutoCanada to Pay $20M to Settle FTC Fraud Charges

AutoCanada will pay $20 million to settle a slew of fraud charges leveled by the Federal Trade Commission against Illinois’s Leader Automotive Group, a 10-rooftop enterprise representing the only U.S. dealerships owned by Edmonton, Alberta-based AutoCanada, the agency announced.
In a statement, FTC directors said the judgment, which AutoCanada accepted without the admission of wrongdoing, is the largest the agency has secured in the auto retail space.
Leader was accused of “systematically” defrauding customers with inaccurate pricing, inventory misrepresentation, payment packing and fake or coerced reviews, many of which were created by dealership workers at management’s insistence. One complaint alleged that dealership personnel withheld a sold customer’s keys while they waited for her to post a positive review.
“Working closely with the Illinois Attorney General, we are holding these dealerships accountable for unlawfully extracting millions of dollars from consumers through a textbook bait-and-switch scheme, and bolstering their poor reputation with fake reviews,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “We will continue our work to ensure that consumers are not being overcharged for cars, and that honest dealers do not need to compete with firms that cheat.”