Massachusetts Attorney General Maura Healey issued an advisory on Friday, September 24, on automobile dealer practices related to advertising, pricing and lease buyouts.
Healey cites the estimated nationwide increase in the average automobile cost of 17 percent for new cars and 21 percent for used cars, and the declining supply coupled with increasing demand, as potential for widespread violations of Massachusetts regulations.
A global shortage of semiconductor chips used in automobiles and the increased demand among consumers during the pandemic is driving rapid increases in automobile prices. Factories worldwide have slowed production, with some halting production temporarily.
Healey cited examples as guidance for both automobile dealers and consumers:
- Automobile dealers must clearly and conspicuously disclose all included and excluded charges in any advertised price of a vehicle as well as the expiration date of any advertised price, and it is unfair or deceptive to refuse to sell a vehicle for the price advertised. 9
- It is unfair or deceptive for automobile dealers to make misrepresentations, including misrepresentations about the value of a vehicle by, among other things, posting or advertising inaccurate prices or prices they will not honor.
- Automobile dealerships have a contractual obligation to honor the terms of any contract with a consumer regarding the lease of a vehicle, including a consumer’s right to purchase the vehicle under the contract, and failure to do so may constitute an unfair or deceptive act or practice.
- Automobile dealerships must comply with existing statutes, rules, regulations, and laws, meant for the protection of the public’s health, safety or welfare that is intended to provide protection to consumers.
- Automobile dealerships are public accommodations and may not discriminate against consumers based on their race, color, religious creed, national origin, sex, gender identity, sexual orientation, physical or mental disability, or ancestry.
Consumers who believe that an automobile dealership has violated the law regarding automobile advertising, pricing, and lease buyout provisions should file a complaint with the Attorney
General’s Consumer Advocacy and Response Division or call the Consumer Hotline at 617-727-8400.
