Six more dealerships reached an agreement with the Rhode Island attorney general to settle allegations of deceptive sales practices in the finance office.

The settlement announced in August has the dealerships paying more than $1 million in refunds and penalties. It surfaced about a year after Rhode Island AG Peter Neronha reached a similar deal with a trio of Ocean State dealerships involving other F&I allegations.

In the Assurances of Voluntary Compliance, filed in Rhode Island Superior Court on July 29, Neronha alleged that Flood Ford of East Greenwich, Flood Mazda of East Greenwich, Flood Ford of Narragansett, Valenti Subaru of Westerly, Valenti Toyota of Westerly, and Saccucci Honda of Middletown automatically charged, or attempted to charge, purchaser fees for an add-on warranty that was not included in the vehicles’ advertised price.

According to the attorney general, these fees violated the Deceptive Trade Practices Act (DTPA) and the Rhode Island DMV’s Rules and Regulations, which require dealers to honor prices they choose to advertise and prohibit dealers from charging customers fees for products without first obtaining their express, informed consent.

As a result, officials said the dealerships will pay more than $1 million between refunds to customers and payments to the state.

According to a news release, that figure includes $874,958 in refunds to thousands of affected consumers. Officials said each consumer who paid this fee since Jan. 1, 2021 will receive between $53 and $83 — or approximately the profit each dealer made on the sale of the warranties — while also retaining the benefit of the warranty.

Consumers will receive their checks approximately 60 days after the settlement is approved by the court, according to officials.

The attorney general said the settlement also requires that the dealers:

—Refrain from charging or attempting to charge customers for products without their express, informed consent

—Refrain from any misrepresentations related to fees or pricing

—Comply with DMV rules regarding fees and advertising.

This settlement follows a similar July 2023 agreement with three other Rhode Island dealerships to cease their practice of allegedly charging for an add-on product not included in the advertised price and other deceptive advertising practices.

That agreement provided for more than $450,000 in refunds to consumers who were charged for a paint protectant and an associated warranty.

“Today’s settlement is another strong step forward in our office’s fight to promote a fair, transparent, and competitive marketplace for all consumers, workers, and businesses,” Neronha said in the news release detailing the newest settlement. “Rhode Islanders should be able to trust that that price they see at the beginning of a transaction is the price they end up paying at the end. And businesses should compete and succeed based on their ability to offer the best products, service, and price rather than on how creatively they can tack on fees.

“This settlement will return hundreds of thousands of dollars to Rhode Island auto consumers while making sure motor vehicle dealers play by the rules. And until every business competes fairly and openly for business, my office will continue to prioritize protecting Rhode Islanders from having to bear the cost of deceptive sales practices,” Neronha continued.

Another suit in motion

And the top Ocean State law enforcement official might not be finished handing out penalties.

To begin the year, Neronha started a lawsuit against an independent dealership for deceptive sales and advertising practices, in violation of the state’s consumer protection law.

In a complaint filed in Rhode Island Superior Court on Jan. 25, the attorney general alleged that King Philip Motors, based in Bristol, R.I., and its two managers, Neil and Tammy DeAlmeida, engaged in the sale and advertising of unsafe motor vehicles, including a years-long practice of failing to obtain a state safety inspection and window sticker before offering vehicles for sale.

Officials said the practice of selling vehicles without an inspection is specifically identified as a violation of the Deceptive Trade Practices Act (DTPA).

According to the allegations, a consumer filed a complaint with the attorney general regarding his experience with defendants. According to the consumer, he purchased a GMC Acadia from defendants and immediately began to have issues.

The next day, when the consumer’s 16-year-old child was driving home from school, the vehicle stopped running at a traffic light.

“Instead of taking responsibility, Mr. DeAlmeida allegedly blamed the consumer for these issues and eventually became verbally abusive. After the Division of Motor Vehicles began an investigation and third-party diagnosed the vehicle with a failing engine, defendants agreed to buy it back from the consumer,” officials said in another news release.

“As alleged in the complaint, instead of making those needed repairs and with full knowledge the vehicle had a defective motor, defendants turned around and sold the vehicle to another unsuspecting consumer without disclosing the issue and prior to the vehicle passing a state safety inspection,” officials continued. “The DMV eventually ordered King Philip Motors to buy back the vehicle.”

Also according to the lawsuit, another local consumer bought a vehicle at King Philip Motors but his check-engine light came on during his ride home.

Officials said the consumer attempted to have King Philip Motors fix the issues nine times, but the defendants refused to attempt any more repairs or to pay for another repair facility to “chase ghosts.”

“According to this consumer, Mr. DeAlmeida became physically threatening and told him that neither a private attorney nor the Division of Motor Vehicles Dealers’ License and Hearing Board ‘could do a thing about it,’” officials said.

Neronha is seeking a court order to bar King Philip Motors from unfair and deceptive sales and advertising, as well as to obtain civil penalties for each violation.

“Consumer protection is just as much about safety as it is about money,” Neronha said in the other news release. “As alleged, this dealership prioritized sales over ensuring the safety of its products. And thanks to the General Assembly, whose leadership and members strengthened Rhode Island’s consumer protection law in 2021, our office continues to investigate and hold accountable those who subvert the law in the name of profit.”