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.