The New York City Department of Consumer and Worker Protection (DCWP) announced an enforcement action against a Bronx-based used auto dealership for overcharging New York consumers, failing to provide cancellation options and committing other violations of New York City’s consumer protection laws. DCWP’s investigation of 2541 E Tremont Ave Auto, LLC – conducting business as “Honda of the Bronx” – found widespread deceptive business practices. The dealership admitted wrongdoing and entered an agreement to pay $129,999.
“Hidden fees and deceptive pricing chip away at the financial security of working families across this city. When someone gets ripped off buying a used car, that’s real money out of their pocket – money they can’t afford to lose. This administration was elected to make sure New Yorkers get a fair shake when they spend their hard-earned money, and that’s exactly what we’re doing,” said Deputy Mayor for Economic Justice Julie Su.
In total, 2541 E Tremont Ave Auto agreed to pay $61,499 in civil penalties and $68,500 in consumer restitution and admitted to more than 350 violations of New York City’s consumer protection laws. Over a multi-month investigation, DCWP identified a pattern of systemic noncompliance with New Yorkers’ consumer rights:
- Bait-and-switch pricing: Cars were advertised at one price but sold at a higher one, affecting dozens of customers.
- Operating without a license: The business sold cars even when it was not properly licensed by the City to do so.
- Missing key paperwork: Many buyers were not given required documents explaining their rights.
- Hidden financing details: Some customers were kept in the dark about loan terms and total costs.
- Cancellation traps: The dealership withheld cancellation options and forms for consumers.
DCWP Enforcement Actions Against Deceptive Auto Sales
In recent years, DCWP has taken targeted steps to clamp down on predatory practices in the used-car industry, securing millions of dollars in restitution for harmed consumers while tightening oversight of dealerships. In the past five years, DCWP has secured $1.97 million for consumers in restitution, scored $6.53 million in civil penalties, investigated 106 used car dealerships, and helped over 675 impacted consumers.
DCWP is currently litigating a trial against Victory Mitsubishi/Spartan Auto, a Bronx-based used auto dealer with a long track record of allegedly scamming New Yorkers, after DCWP conducted a multiyear investigation and filed this large action at the Office of Administrative Trials and Hearings in 2024. DCWP also recently secured a $1.5 million settlement against a Queens-based cohort of dealerships that used false advertising, hidden fees and deceptive financing tactics to exploit buyers.
