Auto Group with Dealerships in Peoria to Pay $20 Million Settlement for Fraud Allegations
The Illinois attorney general and Federal Trade Commission announced on Friday a $20 million proposed settlement agreement with an automotive group that includes dealerships in Peoria.
The settlement is a move to resolve allegations that Leader Automotive Group and AutoCanada defrauded consumers trying to buy vehicles, according to a release from the office of Attorney General Kwame Raoul.
The proposed $20 million settlement, which will be used to reimburse affected consumers, also will require all Leader dealerships in Illinois to make clear disclosures of a car’s offering price, which is the actual price for a car, excluding only required government charges. The dealerships also will be required to receive consent from buyers for add-on product charges.
The FTC said it is the largest settlement against a car dealership group. AutoCanada did not "admit nor deny any of the allegations in the complaint," according to the settlement filed Thursday.
In a release, the company says it will pay $20 million to the FTC and Illinois "with no civil penalties." It also said the "agreement contains no admission of wrongdoing by the company, brings the FTC's investigation to a close, and puts this matter behind the company."
The FTC said it is the largest settlement against a car dealership group. AutoCanada did not "admit nor deny any of the allegations in the complaint," according to the settlement filed Thursday.
In a release, the company says it will pay $20 million to the FTC and Illinois "with no civil penalties." It also said the "agreement contains no admission of wrongdoing by the company, brings the FTC's investigation to a close, and puts this matter behind the company."