FOR IMMEDIATE RELEASE
October 28, 2014 

THE DEPARTMENT OF CONSUMER AFFAIRS ENTERS SETTLEMENT AGREEMENT FORCING UNSCRUPULOUS USED CAR DEALERSHIP TO PAY $441,000 IN FINES AND RESTITUTION

Planet Automotive Used Deceptive Advertising and High-Pressure Sales Tactics to Coerce Consumers into Paying for High-Cost Financing and Unwanted Add-ons

Department of Consumer Affairs (DCA) Commissioner Julie Menin today announced a settlement agreement with Planet Automotive, Inc. and its owner. The agreement is a result of DCA’s charges that Planet Automotive used deceptive advertising to lure consumers in and then pressured those consumers into agreeing to thousands of dollars in unwanted add-ons, such as extended warranties and theft protection, and then compelled those consumers to finance through the dealership. The agreement requires Planet Automotive, which now does business as Platinum Auto Mall at 37-15 Northern Boulevard in Long Island City, to pay $441,000 in fines and consumer restitution to 39 New Yorkers and to adhere to strict compliance with the law. The settlement agreement, which comes just months after DCA launched an aggressive investigation into the sale of unrepaired recalled used cars in New York City, also requires the dealership to check the recall status of each vehicle and repair all safety defects prior to sale. This is the first time DCA has made this requirement as part of a settlement agreement.

Read the full press release: Planet Automotive Settlement