Asbury Denies FTC Allegations in New Filing
Asbury Automotive outlined internal processes as part of a formal denial of wrongdoing following accusations from the Federal Trade Commission of systematic payment packing.
The filing is part of a lawsuit leveled by the FTC in August over violations that allegedly occurred at three Asbury-owned David McDavid dealerships in the Dallas/Fort Worth-area, noted John Huetter, who is covering the case for Automotive News.
The FTC says dealership personnel violated the Equal Credit Opportunity Act and Regulation B by including F&I products in finance deals without informing customers and engaging in discriminatory pricing.
“The agency noted Asbury pays employees more if F&I products are purchased, ‘including bonuses that managers earn when a certain percentage of the dealer’s sales include an add-on,’” Huetter writes. “But Asbury called product sales one of multiple possible pay plan elements and said it had ‘policies that discourage the sale of products for the sole reason of increasing individual employees’ compensation.”
