WASHINGTON, Aug 16 (Reuters) - The U.S. Federal Trade
Commission sued Asbury Automotive Group ( ABG ) on Friday,
alleging that three of its dealerships in Texas charged Black
and Latino customers higher prices than others, and routinely
added services to customers' contracts without their consent.
Up to 75 percent of customers of David McDavid Ford
dealership in Fort Worth, and Honda dealerships in Irving and
Frisco, Texas, reported being charged without their permission
for services such as protective coatings, service contracts and
insurance, according to the agency.
In some cases, customers had declined the services or been
falsely told they were mandatory, while in others their
permission was never sought, the FTC said.
The dealerships on average also charged Black customers $298
more, and Latino customers $214 more for the same add-ons than
they did white consumers who were not Latino, the FTC said.
Asbury operates more than 155 dealerships in more than a
dozen states. A spokesperson for the company did not immediately
respond to a request for comment.
The company intends to fight the allegations, according to a
statement by Andrew Ferguson, one of two Republican FTC
commissioners.
Ferguson said the case was similar to one the FTC settled on
Thursday against an Arizona dealership, and complained that the
agency had used the settled case to classify discrimination as
an unfair business practice.
FTC Chair Lina Khan and the Democratic commissioners said on
Thursday that exempting discriminatory conduct from unfair
practices would give companies that discriminate a pass.
All five commissioners voted to authorize both cases.