A Middletown car dealership has found itself involved in a major settlement announced today by Rhode Island Attorney General Peter F. Neronha. Saccucci Honda, located in Middletown, is one of six dealerships across the state that have agreed to pay more than $1 million following allegations of deceptive sales practices. The settlement, which includes significant refunds to customers and penalties to the state, marks a significant step in protecting consumers from unfair business practices.
The Attorney General’s Office filed Assurances of Voluntary Compliance in Rhode Island Superior Court on July 29, 2024, after investigating claims that Saccucci Honda and the other dealerships automatically charged or attempted to charge customers fees for an add-on warranty that was not included in the vehicles’ advertised prices. These practices, according to the Attorney General, violated the Deceptive Trade Practices Act (DTPA) and state regulations, which require dealers to honor their advertised prices and prohibit them from adding fees without the customer’s informed consent.
Attorney General Neronha emphasized the importance of the settlement, stating, “This agreement is a critical victory in our ongoing efforts to ensure that all Rhode Island consumers are treated fairly. Saccucci Honda and the other dealerships involved must now adhere to strict guidelines that protect consumers from hidden fees and deceptive pricing practices.”
The investigation revealed that Saccucci Honda, along with Flood Ford of East Greenwich, Flood Mazda of East Greenwich, Flood Ford of Narragansett, Valenti Subaru of Westerly, and Valenti Toyota of Westerly, charged or attempted to charge customers between $169 and $199 for a theft deterrent warranty that was not included in the vehicle’s advertised price. In some cases, dealerships also misrepresented their asking prices as the manufacturer’s suggested retail price (MSRP) when the actual prices were significantly higher, a practice that also violated the DTPA.
The dealerships will collectively pay over $1 million, including $874,958 in refunds to thousands of affected customers. Consumers who paid these fees since January 1, 2021, can expect refunds between $53 and $83, representing the profit each dealer made on the warranties. Refunds are expected to be issued within 60 days after the court approves the settlement.
Under the terms of the settlement, Saccucci Honda and the other dealerships must comply with several requirements: they must obtain express, informed consent from customers before charging for any add-on products, refrain from misrepresenting fees or pricing, and adhere to DMV rules regarding fees and advertising.
The investigation into these deceptive practices began in 2021, prompted by the vehicle shortage during the COVID-19 pandemic and its impact on the auto market.
This settlement is part of Attorney General Neronha’s broader initiative to crack down on unfair and deceptive practices in the auto sales industry. The Attorney General’s Office has taken a firm stance against dealerships that advertise one price only to add hidden fees or refuse to honor the advertised price. As part of this effort, the Office has also published a “Buyers Guide” to help consumers navigate the complexities of purchasing a new or used vehicle in Rhode Island.
Attorney General Neronha has been a leading advocate for consumer rights in Rhode Island, taking action against deceptive practices across various industries since 2021, when the Office’s authority to enforce the DTPA was restored. His efforts have protected consumers from unfair business practices in the auto sales, solar panel, and home contracting sectors, among others.
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