Customers of Illinois’ Leader Automotive Group Could Be Eligible for Part of a $20M Settlement

FTC and Illinois Attorney General Reach Proposed Settlement

The Federal Trade Commission (FTC) and the Illinois Attorney General’s Office have reached a proposed settlement with Leader Automotive Group and its parent company, AutoCanada, to resolve allegations of deceptive business practices.

Deceptive Practices Alleged

According to a court complaint, Leader Automotive Group frequently advertised new and used cars online with low prices designed to entice consumers into their dealerships. However, these prices were often false, and salespeople would later inform customers of additional charges for add-ons like protective coatings and theft protection, which were not included in the advertised price.

Add-ons Were Highly Profitable

The court complaint alleges that these add-ons were wildly profitable for Leader, with dealerships at one point reporting more than 99% profit on them. Salespeople were also paid a commission for these add-ons, often making more from the sale of the add-ons than from the sale of the car itself.

Other Alleged Deceptive Practices

Leader also regularly advertised cars as being “certified pre-owned” and available at a specific price, but then charged consumers hundreds or even thousands of dollars in additional “certification fees.” In some cases, Leader advertised cars that had already been sold, and consumers were directed to more expensive cars with junk fees and surprise “market adjustments” added to the price.

Settlement Terms

Under the proposed settlement, Leader Automotive Group will pay $20 million to defrauded customers. The settlement also requires the companies to make clear disclosures of a car’s offering price—the actual price any consumer can pay to get the car, excluding only required government charges—and get consent from buyers for any charges.

Dealerships Affected

The proposed settlement affects customers who purchased vehicles from the following Leader Automotive Group dealerships in Illinois:

• North City Honda – Chicago
• Crystal Lake Chrysler Dodge Jeep Ram
• Hyundai of Lincolnwood
• Kia of Lincolnwood
• Bloomington Normal Auto Mall, which includes Mercedes-Benz of Bloomington, Lincoln of Normal, Volkswagen of Bloomington Normal, Volvo Cars Normal, Subaru of Bloomington Normal, and Audi Bloomington Normal
• Autohaus Motors, which includes Mercedes-Benz of Peoria, Porsche Peoria, Volkswagen of Peoria, and Audi Peoria
• Chevrolet of Palatine
• Hyundai of Palatine
• Toyota of Lincoln Park
• Toyota of Lincolnwood

Conclusion

The proposed settlement is a significant step towards resolving the allegations of deceptive business practices against Leader Automotive Group. Eligible customers will have the opportunity to receive a portion of the $20 million settlement, which will help to compensate them for the harm caused by the company’s actions.

Frequently Asked Questions

Q: Who is eligible for the settlement?
A: Customers who purchased vehicles from the affected Leader Automotive Group dealerships in Illinois.

Q: What does the settlement cover?
A: The settlement covers allegations of deceptive business practices, including false advertising, add-ons, and other charges.

Q: How much will customers receive?
A: The amount customers will receive is still to be determined and will depend on the number of eligible claims and the amount of funds available.

Q: How do I know if I’m eligible?
A: If you purchased a vehicle from one of the affected dealerships, you may be eligible. Check the website of the Federal Trade Commission for more information.