AG Targets Dealer, Again

By Staff Writer August 20, 2020

Illinois Attorney General Kwame Raoul filed a lawsuit against Skokie Motor Sales Inc. operating as Sherman Dodge, for allegedly engaging in unfair and deceptive advertising and business practices. Sherman Dodge’s advertisements allegedly violated motor vehicle advertising regulations relating to sales events, trade-in values, discount substantiation, and advertised prices.

“Sherman Dodge knowingly and repeatedly took advantage of people through deceptive advertising – even after entering into an agreement with the Attorney General’s office to stop using unlawful practices,” Raoul said. “I am committed to seeking enforcement against business and others who violate the law to take advantage of Illinois consumers.”

In October 2014, the Attorney General’s office opened an investigation into Sherman Dodge after receiving complaints from consumers who were unable to purchase vehicles advertised by the dealer. Following the investigation, Sherman Dodge entered into an Assurance of Voluntary Compliance (AVC) with the Attorney General’s office in February 2016. Under the AVC, Sherman Dodge agreed to not sell a vehicle for more than the advertised price, advertise a vehicle that it has already sold or leased, guarantee a specific value for a trade-in vehicle, advertise a sale without reducing the selling price of vehicles listed in an advertisement by at least 5 percent, or include limited rebates in an advertised price.

Raoul’s lawsuit alleges that Sherman Dodge has violated the AVC by continuing to engage in the illegal and deceptive activities prohibited by the AVC.

In the lawsuit, Raoul is seeking to prohibit Sherman Dodge from engaging in acts or practices that violate the law, rescind all contracts entered into between Sherman Dodge and consumers by use of unlawful methods and require Sherman Dodge to pay full restitution to consumers. Raoul is also seeking a civil penalty of $50,000 per deceptive act or practice, with an additional $50,000 for each act or practice committed with the intent to defraud and an additional $10,000 for each act committed against a person 65 years of age or older.

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Last modified on Thursday, 20 August 2020 14:20