Recently, the Federal Trade Commission and the Office of the Illinois Attorney General made it public that they reached a settlement of $20 million with Leader Automotive Group and its parent company, AutoCanada. The settlement follows claims that the dealers were dishonest, which involved false advertising and unauthorized charges. Therefore, if you bought a vehicle from any of these dealers, you may qualify for a portion of the settlement.

What is the settlement about?

The allegations against Leader Automotive Group involve a range of deceptive practices. According to court documents, the dealerships often advertised vehicles at enticingly low prices online. However, when customers arrived at the dealerships, they were met with unexpected costs, such as:

• Preinstalled add-ons: Customers were often told these extras, like protective coatings or theft protection, were mandatory.
• Unauthorized charges: Nearly 80% of surveyed customers reported being charged for add-ons they did not agree to or were falsely told they were required.
• False advertising: Vehicles were advertised as available when, in fact, they were already sold. Customers were then directed to more expensive options with additional fees.
• Certification fees: “Certified pre-owned” cars were often sold with unexpected certification fees ranging from hundreds to thousands of dollars.

Illinois Attorney General Kwame Raoul stated, “This dealership network engaged in bait-and-switch tactics by luring consumers into their dealerships with lower prices only to either require consumers to purchase allegedly pre-installed add-on products or charge consumers for those products without their knowledge or permission.”

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Who qualifies for the settlement?

You may qualify for a portion of the $20 million settlement if:

1. You purchased or leased a vehicle from one of the affected dealerships between specific dates. The eligibility period will be detailed in the settlement terms.
2. You were charged for unauthorized add-ons, falsely told add-ons were required, or paid unexpected fees like certification or market adjustment charges.
3. You purchased a car that was falsely advertised online or sold under misleading conditions.

What dealerships are involved?

The settlement applies to customers of several Leader Automotive Group dealerships across Illinois. These include:

• North City Honda, Chicago
• Crystal Lake Chrysler Dodge Jeep Ram
• Hyundai of Lincolnwood
• Kia of Lincolnwood
• Chevrolet of Palatine
• Hyundai of Palatine
• Toyota of Lincoln Park
• Toyota of Lincolnwood

Additionally, the settlement covers dealerships in the Bloomington-Normal and Peoria areas under the Bloomington Normal Auto Mall and Autohaus Motors brands.

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How can you claim your share?

If you believe you qualify for the settlement, follow these steps:

1. Confirm your eligibility: Check if your purchase was from one of the listed dealerships and falls within the eligible timeframe.
2. Gather your documents: Collect all relevant paperwork, such as your purchase agreement, receipts, and any communication related to add-ons or fees.
3. Watch for official notifications: The FTC or Illinois Attorney General’s Office may contact eligible customers with instructions on how to file a claim.
4. Submit your claim: Once the claims process opens, complete the necessary forms and submit them by the deadline.

What happens next for the dealerships?

Apart from that settlement of $20 million, these dealerships were put under some strict rules as follows: 

• All vehicle prices, along with all required government fees, should be stated clearly.
• All other charges or add-on fees should be clear and upfront.
• Expressions of explicit consent should be obtained before any charge is applied to a customer. 

The settlement, however, aims to protect consumers and ensure the dealership sticks to ethical practices. 

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