Are You The Victim Of Car Dealer Tying Arrangements?
Coercing Consumers To Purchase Add-On Accessories and Services Is Illegal Under California Law
If you purchased a new motor vehicle in the State of California in the past 5 years and were forced to purchase add-on accessories such as window tint, nitrogen-filled tires, exterior protective coatings, gap coverage, alarms, extended warranties, service plans, door edge guards or any other goods or services, or were told by the dealer you must apply for financing through the dealer, even if you had your own financing or paid cash, as a required condition of purchasing that vehicle, we want to speak with you.
The practice is called “tying” and its unlawful under both California and Federal law. If you were forced to purchase these types of add-ons when buying or leasing, you may be entitled to a refund of those charges. Call us today to discuss your claims with an experienced trial attorney.
Another common scheme is when a car dealership tells you the dealer MUST pull your credit report, with a hard inquiry, in order to verify your identity, or as an insurance requirement, even though you had your own financing already in place, or paid cash.
If you’re the victim of these car dealership scams call us today!
California Business and Professions Code section 16727 prohibits product or service tying arrangements in automobile lease and/or purchase transactions. Under California law, an unlawful “tying arrangement” occurs when the sale of one product, called the “tying product,” requires the purchase of another, separate product, called the “tied product.” For example, if an automobile dealership refuses to sell their motor vehicle unless consumer also buys an extended warranty (or similar add-on good or service), then that automobile dealership has engaged in an unlawful tying arrangement since the purchase of the motor vehicle is tied to the purchase of the extended warranty. In this example, the motor vehicle is the tying product and the extended warranty is the tied product.
Common tied goods, products and services may include:
Window tint
Nitrogen-filled tires
Exterior protective coatings
Interior protective coatings
Gap coverage
Alarms
Extended warranties
Service plans
Door edge guards
Dealer financing or leasing
Forced credit inquiries even if paying cash
See Ca Bus. & Prof Code section 16727; Ca Civ. Code section 1770; Northern Pacific Railway Co. v. United States (1958) 356 U.S. 1, 5-6; Jefferson Parish Hospital District No. 2 v. Hyde (1984) 466 U.S. 2, 12; UAS Management, Inc. v. Mater Misericordiae Hospital (2008) 169 Cal.App.4th 357; Suburban Mobile Homes v. AMFAC Communities (1980) 101 Cal.App.3d 532 and Morrison v. Viacom, Inc. (1997) 52 Cal.App.4th 1514.
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