Asbury Automotive Group today rejected false and unfounded allegations by the Federal Trade Commission that three of its dealerships in the Dallas-Ft. Worth area sold protection products to customers that the customers did not agree to buy and that the dealerships discriminated against minorities in the sale of these products. After carefully reviewing the dealerships’ records, Asbury said it will contest the FTC’s lawsuit alleging violations related to the sale of what the FTC calls “add-on” products and will defend the dealerships’ sales practices.

The dealerships David McDavid Ford of Ft. Worth and David McDavid Honda of Frisco and of Irving conducted a thorough internal review. Consistent with company policy, customers who purchased protection products received full disclosure about the products’ costs, impact on payments, and other important terms. Customers signed for the protection products, which were itemized separately on paperwork provided to the customers.

Prior to finalizing sales, the dealerships take the additional, extraordinary step of requiring a compliance review by an independent deal clerk to ensure that protection products are sold with the buyer’s signed consent. The dealerships’ policies and training forbid the sale of protection products such as service contracts, maintenance plans, and interior-exterior protection without explicit, written approval from customers. If Asbury team members are found to have engaged in the sort of conduct alleged by the FTC, they are subject to disciplinary action, including termination.

“Asbury Automotive takes great pride in its compliance procedures and training practices, and firmly believes that we protect our guests and serve them well,” said David W. Hult, Asbury’s CEO. “We offer popular and reliable products that protect our guests and their families including roadside assistance for stranded motorists, coverage for maintenance and unexpected repairs, and protection from interior and exterior damage.”

Dan Clara, Senior Vice President of Operations, rejected the FTC’s assertion that minority customers were charged more for protection products than other customers. “Asbury is committed to non-discrimination and has implemented policies, training, and monitoring to ensure that our dealerships comply with standards on fair lending and equal credit opportunity,” Clara said. “I am proud that Asbury is one of the few companies in the industry that has a Chief Diversity, Equity, and Inclusion Officer. In addition, the three dealerships in question are highly diverse, from the highest level of leadership to front-line staff workers, and in that way reflect the demographics of the guests they serve.”

Asbury CEO David Hult added, “We will not allow the FTC to coerce fines from us or subject us to onerous requirements that negatively impact the car-buying experience for our customers, would not apply to others, and would place us at a competitive disadvantage in the industry. We are confident that we will prevail in the litigation.”

About Asbury Automotive Group, Inc.

Asbury Automotive Group, Inc. a Fortune 500 company headquartered in Duluth, GA, is one of the largest automotive retailers in the U.S. In late 2020, Asbury embarked on a multi-year plan to increase revenue and profitability strategically through organic operations, acquisitive growth and innovative technologies, with its guest-centric approach as Asbury’s constant North Star. As of June 30, 2024, Asbury operated 204 new vehicle dealerships (155 dealership operations), representing 31 brands of automobiles and 37 collision centers in 15 states. Asbury also operates Total Care Auto, Powered by Landcar, a leading provider of service contracts and other vehicle protection products. Asbury offers an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, and prepaid maintenance. Asbury ranks 18th in the 2023 Forbes list of America’s Best Mid-Sized Companies. Asbury is recognized as one of America’s Greatest Workplaces 2023 by Newsweek as well as one of the Best Companies to Work 

 

Source: businesswire.com

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