Arizona dealerships to pay $405,000 in restitution for false advertising

Two Berkshire Hathaway Automotive dealerships in Arizona will pay a total of $405,000 to customers in restitution for false advertising.

The Arizona Attorney General's Office pursued cases against both ABC Nissan and Pinnacle Nissan. It alleged that the dealerships would advertise their cars for a low price, but customers were forced to purchase additional "add-ons", the office said in a statement this week.

The consent judgment said that when customers tried to purchase cars without the addition, the dealerships refused to sell the car.

Pinnacle Nissan would give excuses such as, "if they removed the add-on accessories for one person, then they would have to remove add-on accessories for everyone," the consent judgment said.

In the settlement with the Arizona Attorney General's Office, Pinnacle Nissan will pay $305,000 in restitution to consumers and $50,000 in penalties.

ABC Nissan's judgment is due to the enforcement of a previous 2018 consent decree to pay $130,000 in restitution for similar conduct. They will now pay an additional $100,000 to consumers, $25,000 in civil penalties and $25,000 in costs and attorney's fees, the press release said.

According to the press release, ABC Nissan and Pinnacle Nissan denied the allegations. Pinnacle Nissan declined to comment further on the settlement, while ABC Nissan could not be reached for comment.

Both judgments are still pending court approval.