On behalf of our client, D. Ceuvas, a lawsuit was brought against Luxury Haus Inc. in Bergen County Superior Court.
The complaint alleges that in November 2013, the plaintiff saw an online advertisement placed by The Luxury Haus, Inc. for a white 2011 BMW 750Li xDrive with a mileage of 32,940. The vehicle was advertised for $42,998. He then went to the dealership to purchase the vehicle. After purchasing the vehicle, Luxury Haus prepared a Retail Sales Installment Sales Contract (RISC) which the plaintiff signed along with other documents, and after making a $30,000 down payment, left the dealership with the vehicle.
Several months later, plaintiff alleges that as he was going through the RISC, he noticed that Luxury Haus did not list the advertised price of $42,998 on the RISC. The RISC, instead, listed a Sales Price of $58,540.10. The correct tax amount of the advertised sales price should have been $2579.88, calculated at a rate of 6% for residents of the State of Pennsylvania. The suit alleges that Luxury Haus overcharged the plaintiff approximately $15,542.38 with respect to the price of the vehicle as advertised.
The suit also alleges that Luxury Haus charged $250 for plates and registration. The State of Pennsylvania lists the fees for registration as $36. The suit also alleged that Luxury charged the plaintiff $399 for “Doc Prep.” without a breakdown of the actual charges in violation of the rules promulgated by the New Jersey Division of Consumer Affairs. The total amount plaintiff was overcharged was approximately $16,929.66.
The Complaint alleges both common law fraud and consumer fraud.
In litigation, LUXURY HAUS displayed the same type of aggressive misconduct as displayed in its fradulent advertisement scheme. LUXURY HAUS claimed in papers submitted to the Court that the advertisement at issue was not theirs, but belong to Carfax, a company which does not even sell vehicles. As a result of misconduct displayed by Luxury in this litigation, a judge issued SANCTIONS against LUXURY. See copy of Order of Sanctions
The New Jersey Consumer Fraud Act (CFA) prohibits any unconscionable commercial practice, deception, fraud, misrepresentation, or intentionally concealing any information important to a transaction.
The New Jersey Department of Consumer Affairs (NJDCA)is empowered to enact regulations to implement the CFA. The DCA enacted a regulation that it is unlawful for an automobile dealership to refuse to sell a vehicle at the advertised price.
The CFA applies to any business selling consumer products. A business could also qualify as a consumer if the business purchase a product for use in its own business’s operation, and not for re-sale.
A consumer who is defrauded by a business is entitled to 3 times his or her actual loss (treble damages) plus an award of reasonable attorneys fees and costs.
If you are a victim of any type of consumer fraud with this or any other business, don’t hesitate to call us for a free consultation.