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Maryland car dealership accused of engaging in ‚unfair and deceptive sales practices‘

Prince George’s County, Maryland is currently in the spotlight as the Maryland Attorney General has filed charges against a local car dealership for unfair or deceptive trade practices. The dealership in question is DARCARS of Bowie, Inc. d/b/a DARCARS Honda, along with its parent company Mariam, Inc., and owners John Rahmangholi Darvish and Jamshyd Darvish.

DARCARS Honda, located at 2260 Crain Highway in Bowie, Maryland, is facing allegations of violating Maryland’s Consumer Protection Act through unfair and deceptive trade practices in the sale of new vehicles to consumers. The charges include deceptive practices such as charging consumers a fee equal to an extra 2% of the vehicle sales price under the guise of a „sales commission“ that is falsely labeled as „optional.“ Additionally, consumers were reportedly charged more than the advertised price for vehicles, including significant charges for already installed equipment and dealer markup.

Furthermore, the dealership is accused of financing the sale of added products, such as the „DARCARS Assurance“ and „DARCARS Protection Plan,“ in an unlawful manner. Consumers also allegedly had unwanted equipment and products added to their vehicle sales transactions without their consent. Additionally, DARCARS Honda is accused of failing to disclose and itemize all goods and services that consumers were paying for when purchasing a new vehicle, as required by Maryland law.

If found guilty, DARCARS Honda would be required to immediately cease the violation and potentially pay restitution, economic damages, penalties, and costs for the alleged violations of Maryland’s Consumer Protection Act. A hearing on the charges has been scheduled for October 29 through November 8, 2024.

In response to the charges, a spokesperson from Honda of Bowie issued a statement to FOX 5, asserting that the dealership has cooperated fully with the Maryland Attorney General over the past two years and believes that the premise of the case is not supported by the facts. The spokesperson expressed confidence in the dealership’s level of disclosure and stated that they are prepared to defend their company and practices in court against what they deem as baseless claims.

As the case unfolds, consumers and industry observers will be closely watching to see how the legal proceedings play out and what implications the outcome may have for the automotive industry in Prince George’s County and beyond. This case serves as a reminder of the importance of transparency and ethical business practices in the automotive sector, and highlights the role of regulatory authorities in protecting consumers from unfair and deceptive trade practices.

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