Wellesley auto dealership settles allegations it engaged in discriminatory pricing
Norman MillerWELLESLEY — A car dealership with locations in Wellesley and Danvers has agreed to pay a $350,000 settlement with the state Attorney General's Office to settle allegations that it targeted Black and Hispanic customers with discriminatory pricing for add-on products.
Hometown Auto Framingham Inc., which is based at the Wellesley Mazda dealership at 965 Worcester St. (Route 9), did not admit to any wrongdoing. The dealership released a statement emphasizing that it continues to deny the allegations.
"For more than four years, we have vehemently denied the attorney general’s allegations regarding unfair pricing practices for our Black and Latinx customers," the dealership's statement reads. "We have expended considerable effort and resources defending our integrity against these allegations and reached a decision that continuing to do so would take more of our valuable time away from our customers and their automotive needs."
The other dealership in the case that's affiliated with Hometown Auto Framingham is North Shore Mazda on Newbury Street in Danvers.
In a press release, Attorney General Andrea Campbell said Hometown Auto Framingham engaged in "unfair, deceptive and discriminatory" pricing of add-on products when they were sold to minority customers, when compared to white customers.
Add-on products include such items as extended warranties, remote starters, paint protection products and tire protection products.
More:Ambulance diversions are latest cause for concern at MetroWest Medical Center
“Consumers need to know that their race or ethnicity will have absolutely no effect on the type of service they receive from Massachusetts auto dealerships or the prices they will be charged,” Campbell said in the AG's Office release. “My office is committed to protecting consumers from predatory and discriminatory practices that stand in the way of upward mobility, and we will continue our advocacy to ensure all consumers are being charged for services equally and fairly.”
The Attorney General's Office began an investigation into discriminatory pricing of add-on products at Massachusetts auto dealerships in 2018. It alleged Hometown's conduct was in violation of the state's Consumer Protection Law.
As part of the settlement, Hometown agreed to pay $350,000, with $200,000 of that being allocated to pay restitution to affected customers. It also agreed to enact several business practice changes, as well as to provide training to its staff on implicit bias; to include a disclosure of add-on product pricing for the purpose of providing transparency; and to provide compliance monitoring to the Attorney General's Office for future add-on product sales.
Although it did not admit to wrongdoing and continues to deny the allegations, Hometown Auto said it looks forward to being transparent to its customers and to training its staff.
"We remain committed to training our diverse staff on our products, pricing and operations to ensure that we are transparent in all our transactions and provide our customers with the exceptional service and high-quality vehicles they deserve," the company said in its statement.
Norman Miller can be reached at 508-626-3823 or nmiller@wickedlocal.com. For up-to-date public safety news, follow him on Twitter @Norman_MillerMW or on Facebook at facebook.com/NormanMillerCrime.