Van Nuys Car Dealer to Pay $47,500 in Fraud Case
A Van Nuys car dealer was ordered to pay $47,500 in civil penalties Thursday in a consumer fraud case that alleged it that advertised automobiles at well below normal prices that were already sold when interested customers arrived.
Miller Imports admitted no wrongdoing in agreeing to the judgment, which requires the dealership to disclose quantity limits on advertised cars and prohibits salesmen from discouraging the purchase of specially priced cars.
For the record:
12:00 a.m. Nov. 8, 1986 For the Record
Los Angeles Times Saturday November 8, 1986 Valley Edition Metro Part 2 Page 7 Column 1 Zones Desk 2 inches; 56 words Type of Material: Correction
An article Friday mischaracterized a civil case against a Van Nuys car dealer as a fraud case. In fact, the Los Angeles County district attorney’s office alleged that the dealer engaged in “misleading advertising.”
The case was settled Thursday when the dealer, Miller Imports, agreed to pay $24,600 in civil penalties and $22,900 in costs of the investigation. Miller Imports admitted no wrongdoing.
Deputy Dist. Atty. Michael J. Delaney said Miller Imports often advertised Nissan Sentras at several hundred dollars below normal price when only one car was available at that price.
In addition, the dealer violated state law by failing to pull advertising for such cars within 48 hours of their sale, he said.
“Sometimes, people would drive across town, maybe on a Sunday, only to learn that that one car was sold back on Thursday,” Delaney said. “When you get to the lot, that one’s gone and they work on you to buy the others.”
Margaret Henry, representing Miller Imports, said the company did not believe it was violating the law with its advertising.
Ads for lower-priced cars complied with normal state requirements by specifying the stock number and serial number, and advertisements which covered only one car were phrased in the singular, she said.
“This was a new interpretation as far as quantity goes, and Miller Imports was happy to comply with it,” she said.
The stipulated judgment and permanent injunction were approved by Los Angeles Superior Court Commissioner Donald Pike.
