Georgia-based Asbury Automotive Denies FTC Allegations of Unlawful Sales Practices and Discrimination
Asbury Automotive Group (NYSE: ABG) has rejected allegations made by the Federal Trade Commission (FTC) regarding its Dallas-Ft. Worth area dealerships. The FTC claims that three Asbury dealerships—David McDavid Ford of Ft. Worth, David McDavid Honda of Frisco, and David McDavid Honda of Irving—sold protection products without customer consent and engaged in discriminatory practices against minority customers. The suit alleges that Black and Latino customers were charged higher prices that others customers and routinely added services to their contracts without consent. The FTC said that in some cases customers had declined the services or falsely told that that they were mandatory. The dealerships on average charged Black customers $298 more and Latino customers $214 more for the same add-on products than they did white customers who were not Latino.
Asbury Automotive asserts that its dealerships adhere to strict compliance procedures. A thorough internal review confirmed that customers received full disclosure about the protection products’ costs, impacts on payments, and other terms. All protection products were itemized separately, and customers signed for them.
The dealerships also conduct an independent compliance review before finalizing sales to ensure explicit, written customer approval. Asbury’s policies mandate disciplinary action, including termination, for any employees found violating these standards.
FTC officials have not disclosed the methodology used in their investigation despite Asbury’s requests. Asbury verified through a Freedom of Information Act request that no consumer complaints about the McDavid dealerships were received from 2019 to the spring of this year.
David W. Hult, CEO of Asbury Automotive, emphasized the company’s commitment to compliance and customer service. He stated, “We offer popular and reliable products that protect our guests and their families.”
Dan Clara, Senior Vice President of Operations, denied the FTC’s claim of discriminatory pricing. “Asbury is committed to non-discrimination and has implemented policies, training, and monitoring to ensure compliance with fair lending and equal credit opportunity standards,” Clara said.
Asbury CEO David Hult added, “We will contest the FTC’s allegations vigorously and are confident in our ability to prevail in this litigation.”
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company headquartered in Duluth, GA, is one of the largest automotive retailers in the U.S.
