Mitsubishi Motors North America had sufficient grounds to terminate a New York City dealership after it pleaded guilty to committing "at least 7,939" consumer protection violations in the sale of used vehicles, a federal court has ruled.
U.S. Magistrate Judge James Wicks refused to nullify the termination of Brooklyn Mitsubishi's franchise, finding ample evidence the dealership violated its sales and service agreement. He cited provisions about impairment to Mitsubishi's reputation, submissions of false reports to customers, license suspensions and failure to maintain good customer relations.
In June 2022, the dealership signed a consent agreement with the New York City Department of Consumer and Worker Protection that included financial penalties and a one-week prohibition from acquiring and selling used vehicles, the Aug. 14 decision said. In addition, the settlement covered violations by Brooklyn Volkswagen, also owned by Charalambos Charalambous. The two dealerships paid more than $500,000 in civil fines and $304,902 in restitution for their consumer protection violations.