Auto Dealers Cited For Failing

Attorney General Spitzer today announced that his office has obtained settlements with dozens of used car dealers who failed to inform customers that they were buying cars once returned as "lemons."

"Consumers have a right to know whether a car has a history of problems," Spitzer said. "The state's Lemon Law requires such disclosure, and my office is committed to vigorous enforcement of that law."

Following a review of Lemon Law cases during the past three years, Spitzer's office determined that 56 dealerships across the state failed to comply with a key provision of the law. This provision requires auto dealers to notify the state Department of Motor Vehiclesfollowing the return of a vehicle under the Lemon Law so that the title can be "branded" with a warning to prospective buyers. The warning indicates that the vehicle did not conform with a manufacturer's warranty.

According to Spitzer, the dealers also failed to notify subsequent buyers regarding car problem histories, as required by law.

The auto dealers identified as violators were assessed a total of $50,000 in civil penalties and costs for their violations of the law.

In addition, 37 current owners of returned "lemons" will receive approximately $200,000 in restitution because they were not properly notified of their vehicle's histories.

A list of the dealerships cited is attached.

To protect against unknowingly buying a "lemon," Spitzer recommended that consumers check vehicle histories prior to making purchases by going to web sites such as www.carfax.com or www.consumerguide.com These web sites provide important information about particular vehicles, including a title check, which would reveal if a car has been salvaged, returned as a lemon, rebuilt, or otherwise damaged. These web sites can also verify odometer readings and search for a history of major accidents, or disclose whether a car was stolen or was formerly used as a rental car or police vehicle.

Individuals with questions about their rights under the New and Used Car Lemon Laws are encouraged to contact the Attorney General's consumer help line at (800) 771-7755.

These cases were handled by Assistant Attorneys General Stephen Mindell and Herbert Israel of the Consumer Frauds and Protection Bureau.

For Adobe PDF files you can download Adobe Reader from Adobe Systems.