ST. PETERS – The Napleton Automotive Group, an auto dealership chain, will pay $10 million to settle a lawsuit alleging questionable business practices, the Federal Trade Commission said on Friday.
The lawsuit named eight of the company’s 51 dealerships, including a location in St. Peters. It was alleged that dealers were charging customers hidden fees for unwanted add-on products such as payment insurance and paint protection. It claimed merchants would include the fees in lengthy sales contracts at the end of negotiations, even if customers had specifically opted out of the add-ons.
It was also alleged that the dealers charged black customers higher financing fees and interest rates than white customers.
The dealers charged black customers about $99 more for add-ons and $190 more for financing, the lawsuit alleged.
Tilden Katz, a spokeswoman for Napleton, said in an email on Friday that the company vehemently denies any wrongdoing but has settled the case to avoid disrupting business.
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“We have taken steps to implement additional safeguards to ensure full transparency for our customers,” Katz said. “We intend to continue to build on the trust we have worked so hard to establish with the consumer public and look forward to forging new relationships with future generations of satisfied customers.”
The lawsuit was filed by the FTC and the state of Illinois. The company is based in Oakbrook Terrace, Illinois. The dealers named in the lawsuit included locations in Illinois, Florida, Pennsylvania and Missouri.
The St. Peters dealer named in the case was Napleton’s Mid Rivers Imports Inc., also doing business as Napleton’s Mid Rivers Kia.
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