FTC sues Asbury Automotive, says it overcharged black, Latino customers By Reuters
by Jody Godoy
WASHINGTON (Reuters) – The U.S. Federal Trade Commission sued Asbury (NYSE: ) Automotive Group on Friday, alleging that three of its dealerships in Texas charged black and Latino customers higher prices than others, and often added services in customer contracts without their consent. .
Up to 75 percent of David McDavid Ford (NYSE: ) customers in Fort Worth, and Honda (NYSE:) vendors in Irving and Frisco, Texas, reported being billed without their consent for services such as protective clothing, service contracts and insurance, according to the agency.
In some cases, customers refused the services or were falsely told they were needed, and in others their consent was not sought, the FTC said.
Retailers on average also charged Black customers $298 more, and Latino customers $214 more for the same add-ons than non-Latino white customers, the FTC said.
Asbury operates more than 155 dealers in more than a dozen states. A company spokesperson did not immediately respond to a request for comment.
The company intends to fight the allegations, according to a statement from Andrew Ferguson, one of the two Republican FTC commissioners.
Ferguson said the case is similar to one the FTC settled Thursday against an Arizona company, and complained that the agency used the settled case to classify discrimination as an unfair business practice.
FTC Chairwoman Lina Khan and the Democratic commissioners said Thursday that exempting discriminatory conduct would give discriminatory companies a mandate.
All five commissioners voted to approve both cases.
