LOS ANGELES (Legal Newsline) — A group of auto dealerships, holding and management companies and two individuals will pay roughly $3.6 million in restitution after facing allegations of using deceptive and unfair business practices.

 

Under the proposed settlement announced March 14 by the Federal Trade Commission, the Sage Automotive Group is banned from making misrepresentations about add-on products, financing and endorsements or testimonials. The defendants are also banned from further violations of the Truth In Lending Act and Regulation Z, and the Consumer Leasing Act and Regulation M.

 

Corporate defendants in the case are Universal City Nissan Inc.; Sage Downtown Inc., also known as Kia of Downtown Los Angeles; Glendale Nissan/Infiniti Inc., Valencia Holding Co. LLC, also known as Mercedes-Benz of Valencia; West Covina Auto Group LLC, also known as West Covina Toyota and West Covina Toyota/Scion; West Covina Nissan LLC; Covina MJL LLC, also known as Sage Covina Chevrolet; Sage North Hollywood LLC also known as Sage Pre-Owned; Sage Vermont LLC, also known as Sage Hyundai; Sage Holding Co. Inc. and Sage Management Co. Inc.

 

Individual defendants in the case are Joseph Schrage and Michael Schrage.

 

The FTC voted 2-to-1 to approve the stipulated final order. Acting Chairman Maureen K. Ohlhausen dissented.

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U.S. Federal Trade Commission
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