The recent charges brought against Coulter Motor Company, operator of Coulter Cadillac Tempe and Tempe Buick GMC, by the State of Arizona and the Federal Trade Commission have shed light on the deceptive practices allegedly employed by the dealership. The accusations include deceptive online vehicle pricing and discriminatory practices targeting Latino car buyers. The settlement reached requires Coulter and its former general manager, Gregory Depaola, to pay $2.6 million, with a significant portion allocated for issuing refunds to affected customers.
Lindsay Coulter, operations manager for the company, vehemently denies the allegations, stating that full disclosure is always provided to customers regarding vehicle pricing and add-on products. Despite Coulter’s denial, the FTC’s Director of the Bureau of Consumer Protection, Samuel Levine, asserts that Coulter utilized illegal tactics such as junk fees to inflate prices for consumers, particularly targeting Latino consumers. This aspect of the investigation has been particularly distressing for Coulter, as a family-owned business that prides itself on integrity and transparency.
The State and the FTC’s investigation revealed that Coulter routinely charged customers for unwanted add-ons and imposed additional fees without their consent. A survey conducted among Coulter’s customers indicated that a staggering 92% were billed for at least one unauthorized add-on. Furthermore, the dealership was found to advertise vehicle prices online at discounts below the suggested retail price, only to increase the price upon customers‘ arrival at the dealership, citing a „market adjustment“ that included mandatory add-ons and miscellaneous fees.
Among the add-ons allegedly forced upon customers were vehicle identification number etching, window tinting, nitrogen-filled tires, and theft recovery services. Coulter purportedly misled customers into believing that these add-ons were obligatory for purchasing the vehicle, sometimes charging customers twice for the same add-on. Additionally, the complaint includes accusations of discriminatory practices, with Latino customers reportedly charged significantly higher interest rates and add-on fees compared to white, non-Latino customers.
Attorney General Mayes condemned Coulter’s deceptive and discriminatory practices, emphasizing the importance of protecting consumers from predatory behavior. Both Coulter and Depaola face charges for violations of various acts, including the FTC Act, the Equal Credit Opportunity Act, and the Arizona Consumer Fraud Act. Despite the company’s disagreement with the findings, it has opted to settle and pay the fine to avoid protracted legal proceedings.
As part of the settlement, Coulter is required to establish a comprehensive fair lending program, appoint a fair lending officer, conduct employee training, and implement policies to ensure transparency in fees and markups. Consumers who believe they have been victims of fraud are encouraged to file complaints with the Attorney General’s Office or the FTC. The Coulter family, with a century-long tradition in vehicle sales, remains committed to upholding ethical standards and complying with the settlement terms.
In conclusion, the charges against Coulter Motor Company serve as a reminder of the importance of consumer protection and fair business practices. By holding businesses accountable for deceptive practices and discrimination, regulatory bodies aim to safeguard consumers and promote transparency in the marketplace. Moving forward, Coulter Tempe has pledged to update its policies and procedures to align with the settlement requirements, ensuring a more equitable and honest experience for customers.