BOSTON — A Massachusetts auto dealership has agreed to pay $350,000 to resolve allegations that it charged Black and Hispanic customers more than white customers for certain add-on products including paint protection and remote starters, the state attorney general’s office said Tuesday.
The assurance of discontinuance, filed in Suffolk Superior Court, requires Hometown Auto Framingham Inc., which operates car dealerships in Wellesley and Danvers, to provide staff training on implicit bias and the obligation not to discriminate when pricing products.
“Consumers need to know that their race or ethnicity will have absolutely no effect on the type of service they receive from Massachusetts auto dealerships or the prices they will be charged,” Attorney General Andrea Campbell said in a statement.
Add-on products are extra goods or services sold to consumers who purchase or lease a vehicle.
A voicemail seeking comments was left with the dealership.
The attorney general alleged that Hometown’s conduct violated the state’s Consumer Protection Act, which prohibits unfair or deceptive acts and practices in trade or commerce.
Of the settlement, $200,000 will provide restitution to consumers and for several changes to the dealership’s practices to decrease the likelihood of pricing disparities.
This is a developing story. Check back for updates as more information becomes available.
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