Two New York dealerships have been ordered to end what the state attorney general's office calls fraudulent, deceptive and illegal business practices in the sale of a security add-on product.
The dealerships will also be required to pay restitution, damages and civil penalties, the attorney general's office said in a statement last month.
The court order is the result of a lawsuit filed by former New York Attorney General Eric Schneiderman in December 2017. The lawsuit says Victory Mitsubishi of Larchmont in Westchester and Victory Suzuki of the Bronx charged as many as 1,100 consumers for "unwanted and bogus" anti-theft products, New York Attorney General Barbara Underwood's office said in a statement. The product cost up to $4,000 per customer.
The case is part of the office's initiative to end the auto dealer practice of "jamming," or unlawfully charging consumers for products and services without their knowledge or consent, the office said in a statement. The attorney general's office has obtained about $19 million in restitution and penalties from dealerships since 2015, and nearly 29,000 consumers have been eligible for restitution.
"This court order is a victory for New Yorkers who were ripped off by these car dealerships," Underwood said in the statement.