Maryland Attorney General Brian E. Frosh announced that his office’s Consumer Protection Division has reached a settlement with Koons Kia of Owings Mills, MD to address allegations of the systematic practice of forcing customers to pay for hidden fees and phony freight charges.
The settlement requires Koons Kia to stop charging car buyers fees, other than taxes or title
fees, if the fees were not included in the advertised price for a vehicle. The dealership also
agreed not to charge consumers for shipping if freight charges were already included in the advertised price for the vehicle.
Victims Will Receive Reimbursement
Koons Kia agreed to return all fees it collected from consumers other than taxes and title fees that were not included in the advertised price of the vehicle, as well as all freight charges that were already included in the advertised price of the vehicle.
Attorney General Frosh estimates that more than $1 million will be returned to consumers. Koons Kia also agreed to pay the Consumer Protection Division $100,000 for the costs associated with the investigation.
“Car dealers must honor the price they advertise for their vehicles,” said Attorney General Frosh.
“I am glad that Maryland consumers will receive refunds for the fees that they paid above the
Consumers who are owed refunds under the settlement will be contacted directly by the Maryland Attorney General’s Consumer Protection Division.
A Growing Problem Nationwide
Tales of dishonest pricing and unfriendly dealer tactics are unfortunately commonplace. That’s why CarEdge exists; to put car buyers back in control of their purchase. If you or anyone you know have experienced something similar to what happened to customers of Koons Kia, please see our new resource on how to contact your state’s attorney general office and consumer protection division.
Dealers take complaints filed with the attorney general’s office very seriously, and this serves as a reminder why.
If you’re still shopping for a new or used vehicle, follow these steps to push back against forced dealer add-ons.