NEWARK, N.J. (Legal Newsline) — New Jersey Attorney General Chistopher S. Porrino has announced the Division of Consumer Affairs has reached an agreement with the Luxury Haus Inc. over allegations of defrauding customers. Luxury Haus will pay $20,000 and update its business practices.
According to the division, Luxury Haus allegedly committed multiple violations of the New Jersey Consumer Fraud Act, the Motor Vehicle Advertising Regulations, the Automotive Sales Practices Regulations, the Used Car Lemon Law and the Used Car Lemon Law Regulations.
Specific allegations include charging mandatory fees for optional services, failing to install anti-theft services purchased by consumers and failing to disclose prior vehicle damage.
“For most people, buying a used car is daunting enough without having to worry about being preyed on by dealers engaged in the kind of chicanery Luxury Haus is accused of,” Porrino said. “This order will provide just relief through binding arbitration to customers who have been allegedly deceived by this dealership.”
Luxury Haus agreed to not engage in unfair business practices in the future. In addition to the $20,000 in civil penalties, the company will pay $17,661 for attorneys’ fees and costs. Porrino’s office agreed to suspend $12,422 of the settlement amount if Luxury Haus complies with the other settlement terms over the next year.