State Sues Auto Shipper for Alleged Deception

The California attorney general’s office filed a lawsuit Tuesday against a Palm Springs auto shipping firm, seeking more than $3 million in penalties for what it called nationwide deception of consumers about the company’s ability to deliver cars.

Deputy Atty. Gen. Michael R. Botwin said the company, A. Aaron’s, promised “fast, safe service” in Yellow Pages advertising across the country. In fact, he said, many cars were delivered late or not at all, and some were delivered in damaged condition.

Also on Tuesday, the state obtained a Municipal Court order in Los Angeles allowing it to disconnect A. Aaron’s toll-free number, which appears in its Yellow Pages ads.

The lawsuit, filed in Los Angeles Superior Court with the Riverside County district attorney, asks for $1 million in penalties each from the firm, its president and his wife. The suit also seeks an unspecified amount in restitution for customers.

A. Aaron’s President Mitchell Winik said: “They can’t sue me. They have to sue the corporation.” He would not comment on the allegations, he said, because he had not seen the lawsuit or the court order to disconnect the 800 number.

A. Aaron’s is an auto broker, an intermediary between trucking companies and people who want their cars shipped.

The Interstate Commerce Commission, which regulates the trucking industry, has more than 400 complaints against A. Aaron’s. “That may be the tip of the iceberg,” Botwin said.

A. Aaron’s is alleged to have violated the state’s business and professions code by making false claims to consumers and to have hurt competitors with its unfair business practices. A. Aaron’s has boasted that it is one of the largest auto shippers in the country, with revenue of more than $1 million a year.

The suit alleges that A. Aaron’s misrepresented itself as a trucking company, promising delivery on specific dates when it did not have the ability to follow through. If A. Aaron’s could not find a trucking company, shipments were delayed for days or weeks, the suit says. Customers who canceled contracts forfeited deposits of up to $299.

The suit claims it was illegal for A. Aaron’s to keep the deposits because the cancellations resulted from A. Aaron’s failure to honor its agreement to ship the cars.