Auto Parts Retailers Pay For

Attorney General Spitzer today announced that the nation's two leading auto parts retailers have agreed to pay $220,000 to settle a case involving excessive fees on new car batteries.

AutoZone, Inc. of Memphis, Tennessee and Advance Stores Company, Inc., which does business as Advance Auto Parts, based in Roanoke, Virginia, both settled allegations that they violated a state law that limits the incentive fee charged to consumers purchasing lead-acid batteries.

"The Legislature set the fee for lead-acid batteries at a level that would encourage consumers to turn in old car batteries but protect against unreasonable windfalls by retailers," Spitzer said.

An investigation by Spitzer's office determined that since 2000, Advance Auto Parts and AutoZone had been charging return incentive fees of as much as eight dollars to new battery customers who failed to turn in their old batteries. State law, however, limits return incentive fees to five dollars and requires distributors to accept the old batteries free of charge.

When notified by Spitzer's office of the overcharge, both Advance Auto Parts and AutoZone corrected the problem by lowering the return incentive fee to the five dollar limit.

In settling the case, Advance Auto Parts and AutoZone paid $86,000 and $105,000 respectively - representing the excess proceeds from the overcharges - to Spitzer's office to be used to provide pro-rata refunds to consumers and charitable donations.

Funds remaining after restitution has been paid to consumers overcharged by Advance Auto Parts will be donated in equal shares to the following organizations: Friends of the Buffalo Niagara Rivers, Great Lakes United, Citizens Environmental Coalition, Concerned Citizens of Cattaraugus County and Western New York Land Conservancy. Likewise, remaining funds from Autozone will be donated in equal shares to the Northeast Environmental Enforcement Center and the National Center for Healthy Housing.

In addition to their restitution payments, Advance Auto Parts paid $15,000 in civil penalties and AutoZone paid $10,000.

Advance Auto Parts operates nearly 100 stores throughout upstate New York and AutoZone has more than 80 retail stores throughout the state.

To be eligible for a refund of the fee overcharge, consumers must file completed complaint forms by April 7, 2003 with the Attorney General and provide a receipt showing payment of the return incentive. Complaint forms are available on the Attorney General's web site at www.ag.ny.gov/complaints/complaints.html. For further information, consumers should call the Attorney General's consumer help line at (800) 771-7755.

This case was handled by Assistant Attorney General James Morrissey in the Buffalo Regional Office.