Uncovering Deceptive Sales Practices: Rhode Island Attorney General Takes Action Against King Philip Motors

Introduction:

On January 26, 2024, Rhode Island Attorney General Peter F. Neronha announced legal action against King Philip Motors, a car dealership accused of engaging in deceptive sales and advertising practices. The lawsuit, filed on January 25, 2024, in Rhode Island Superior Court, aims to protect consumers from the dealership’s alleged misleading tactics.

Allegations Against King Philip Motors:

A. Violation of the Deceptive Trade Practices Act (DTPA):

The lawsuit alleges that King Philip Motors violated the Deceptive Trade Practices Act (DTPA) by:

• Selling and promoting unsafe motor vehicles.
• Failing to obtain required state safety inspections and window stickers before offering vehicles for sale.

B. Consumer Complaint:

The lawsuit stems from a consumer complaint involving a GMC Acadia purchased from King Philip Motors. The consumer, Mr. DeAlmeida, experienced a breakdown with the vehicle the very next day after purchase.

Mr. DeAlmeida approached the dealership owner, Mr. Dutra, to address the issue. However, Mr. Dutra allegedly refused to take responsibility and verbally abused Mr. DeAlmeida. A subsequent investigation by the Division of Motor Vehicles (DMV) revealed a failing engine, prompting the dealership to repurchase the vehicle.

C. Resale of Defective Vehicle:

Despite repurchasing the defective GMC Acadia, King Philip Motors allegedly resold the vehicle to another consumer without disclosing the issues or obtaining a safety inspection. The DMV later mandated the repurchase of the defective vehicle.

D. Additional Consumer Complaint:

Another consumer reported issues with a vehicle purchased from King Philip Motors, including an illuminated check-engine light. The dealership allegedly refused to address the problems and allegedly made physical threats toward the consumer.

Legal Action and Consumer Protection:

A. Attorney General Neronha’s Emphasis on Consumer Protection:

Attorney General Neronha emphasized the importance of consumer protection in this case, stating, “Consumers have a right to expect that the vehicles they purchase are safe and that they are not being misled by deceptive sales practices.” He further commended the strengthened consumer protection laws enacted in Rhode Island in 2021, which empower his office to hold accountable those who prioritize profit over safety.

B. Crackdown on Unfair Practices in Auto Sales Industry:

This legal action against King Philip Motors is part of a broader initiative by Attorney General Neronha to address unfair practices in the auto sales industry. The initiative focuses on deceptive pricing, unwanted fees, and services encountered during the car-buying process.

To assist consumers, the Attorney General’s Office has published a “Buyer’s Guide” that provides information on fees associated with purchasing vehicles in Rhode Island. The guide aims to empower consumers with knowledge to make informed decisions during the car-buying process.

Legal Team and Complaint Filing:

The case is being handled by Special Assistant Attorney General Stephen Provazza, Chief of the Consumer & Economic Justice Unit. Special Assistant Attorney General Alex Carnevale and Investigator Tayla Martins are also involved in the case.

Rhode Island residents who have experienced similar issues with King Philip Motors or other car dealerships are encouraged to file complaints with the Office’s Consumer & Economic Justice Unit.

Deceptive Trade Practices Act and Its Significance:

The Deceptive Trade Practices Act (DTPA) is a powerful tool for protecting consumers from unfair and deceptive business practices. The strengthened DTPA in 2021 empowered the Attorney General’s Office to take action against a broader range of violations in various industries, including auto sales.

Conclusion:

The legal action against King Philip Motors is a significant step in protecting consumer rights and promoting safety in the auto sales industry. It sends a clear message that deceptive sales practices will not be tolerated and that consumers have a right to expect honesty and transparency from car dealerships.

Consumers are encouraged to be vigilant and to report any instances of deceptive sales practices to the Attorney General’s Office. Working together, we can create a marketplace where consumers can make informed decisions and purchase vehicles with confidence.