Saccucci Honda of Middletown is among six Rhode Island car dealerships that have reached a settlement agreement with Attorney General Peter F. Neronha over alleged deceptive sales practices. The settlement, totaling more than $1 million, includes customer refunds and payments to the state.
The Attorney General’s office filed Assurances of Voluntary Compliance in Rhode Island Superior Court on July 29, alleging that Saccucci Honda and five other dealerships automatically charged or attempted to charge purchaser fees for an add-on warranty not included in the vehicles’ advertised price.
These fees allegedly violated the Deceptive Trade Practices Act (DTPA) and Rhode Island DMV’s Rules and Regulations, which require dealers to honor advertised prices and prohibit charging customers for products without their express, informed consent.
“Rhode Islanders should be able to trust that that price they see at the beginning of a transaction is the price they end up paying at the end,” said Attorney General Neronha. “And businesses should compete and succeed based on their ability to offer the best products, service, and price rather than on how creatively they can tack on fees.”
The settlement requires Saccucci Honda and the other dealerships to pay a combined total of $874,958 in refunds to thousands of affected consumers. Each customer who paid the fee since Jan. 1, 2021, will receive between $53 and $83, approximately the profit each dealer made on the sale of the warranties.
Consumers will retain the benefit of the warranty and can expect to receive their refund checks about 60 days after court approval of the settlement.
The agreement also mandates that Saccucci Honda and the other dealers refrain from charging customers for products without their express, informed consent, avoid misrepresentations related to fees or pricing, and comply with DMV rules regarding fees and advertising.
This settlement follows a similar agreement in July 2023 with three other Rhode Island motor vehicle dealerships, which provided more than $450,000 in refunds to consumers charged for an undisclosed paint protectant and associated warranty.
The Attorney General’s office began investigating dealership sales practices in 2021 following the vehicle shortage during the pandemic and its subsequent effects on the auto market.
This case is part of Attorney General Neronha’s broader initiative to crack down on unfair and deceptive practices in the auto sales industry. The office has published a “Buyers Guide” to help consumers navigate fees when purchasing vehicles in Rhode Island.
“Today’s settlement is another strong step forward in our Office’s fight to promote a fair, transparent, and competitive marketplace for all consumers, workers, and businesses,” Neronha said.
The Attorney General’s work includes issuing notices to every auto dealer in Rhode Island about illegal price advertising and actively investigating several other dealers for similar practices.
In 2021, Attorney General Neronha worked with the General Assembly to pass legislation restoring the authority of his office to protect Rhode Island consumers against violations of the DTPA.
Since then, the Attorney General has taken action to protect solar panel customers, halt schemes targeting business owners, defend consumers against deceptive contractors, and prevent the sale of unsafe vehicles.
Assistant Attorney General Stephen Provazza, Chief of the Consumer & Economic Justice Unit, and Investigator Tayla Martins handled the matter on behalf of the Office of the Attorney General.
