AutoNation
RIVERSIDE (CNS) – A national seller of used vehicles, AutoNation Inc., will pay $650,000 to counties throughout California to settle a consumer protection lawsuit filed by the Riverside County District Attorney’s Office and other agencies, it was announced Wednesday.
AutoNation reached an agreement that was certified Tuesday in Santa Clara County Superior Court. Along with Riverside County, district attorney’s offices in Los Angeles, Santa Clara, San Francisco and Ventura counties joined in the civil action that was filed last year.
“Our office is committed to holding businesses accountable for any violations of consumer protection laws,” Riverside County District Attorney Mike Hestrin said. “We will work diligently to ensure that consumers are treated fairly and the laws are followed.”
AutoNation did not immediately respond to a request for comment.
Prosecutors said the suit stemmed from the company’s lack of compliance with California Vehicle Code regulations regarding registration transfers.
According to the civil complaint, AutoNation dealerships sometimes failed to comply with the 30-day window of notifying the Department of Motor Vehicles whenever a vehicle was sold and the registration transferred to a new owner.
“That same 30-day deadline applies to the certificate of ownership, known as a `pink slip,”‘ the DA’s Office stated. “These deadlines may be extended if the DMV returns an application to the dealer because it is missing information.”
Under the settlement, AutoNation agreed to rectify and enforce policies at its 42 dealerships in California so that registration and ownership documents are submitted on time.
“These include placing a `stop’ on the sale of used vehicles when they do not have title in hand, or a clear path to getting it within 30 days; requiring that prior to 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 … regional manager or higher is responsible for overall compliance,” according to the statement.
The agreement stipulates the payment of $450,000 in civil penalties, $150,000 in investigative costs and $50,000 for programs supporting consumer protection laws. Of that total, Riverside County is slated to receive $100,000.
The settlement did not require AutoNation to admit wrongdoing, prosecutors said.
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