Rhode Island’s attorney general recently reached an agreement to resolve three enforcement actions with a trio of franchised dealerships in the Ocean State for charging automatic add-ons and fees not included in the advertised price and other advertising practices.

In an agreement — called an assurance of voluntary compliance filed in Rhode Island Superior Court on July 26 — AG Peter Neronha alleged that Grieco Honda, Grieco Toyota, and Grieco Hyundai engaged in sales and pricing tactics that violated the Deceptive Trade Practices Act (DTPA).

Those allegations included charging more for vehicles than they were advertising on their website, automatically charging every customer a fee for a $249 paint and fabric spray (a Zurich Shield) and describing vehicles as available for “auction” or “wholesale” prices.

The agreement settles two lawsuits brought by Neronha in March 2022 against the dealerships.

As a result of the agreement, officials said the three dealerships will pay a combined $557,815 to resolve the claims brought by the attorney general. The said this figure includes $457,815 in direct restitution to consumers and $100,000 to the office of the attorney general to pay for the costs of its investigation and suits.

According to a news release, the agreement entered by the court also prohibits the dealerships from engaging in these practices in the future.

“Dealerships will refrain from charging consumers for any products or services without first obtaining their express informed consent and will not advertise any price for a vehicle unless it is available for purchase at that price and as described in the advertisement,” officials said.

“The dealerships had voluntarily agreed to implement many of these changes after the attorney general filed suit in March 2022,” they continued.

According to the filing, the dealerships were automatically charging every customer for a $249 paint and fabric spray and warranty product known as a “Zurich Shield.”

Neronha alleged this service and its costs were not included in advertisements, and customers would only learn about this fee later in the purchasing process.

Officials said customers who paid for the basic Zurich Shield product since Jan, 1, 2021 at one of these Grieco dealerships will be able to keep the product, including the warranty, and also receive a check worth 28% of the price of the product ($69) from Grieco.

The $69 payment represents what consumers paid to Grieco over and above the cost of the product itself, according to officials.