Asbury Automotive ‘vows a vigorous defense’ against ‘unfounded’ FTC allegations

On Friday, Asbury Automotive Group rejected what it said were “false and unfounded allegations” by the Federal Trade Commission, or FTC, 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. FTC officials refused to provide the methodology they employed in making their allegations even though Asbury requested such information for several months. Asbury has verified through a Freedom of Information Act request that the FTC received no consumer complaints about the McDavid dealerships from 2019, the start of the period covered by the lawsuit, through late spring of this year,” the company stated. 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.”