The Federal Trade Commission (FTC) has taken legal action against Asbury Automotive, accusing the company of charging consumers for unwanted add-on items and engaging in discriminatory practices.
The complaint specifically addresses three Texas dealerships — David McDavid Ford Ft. Worth, David McDavid Honda Frisco, and David McDavid Honda Irving — as well as Ali Benli, a former general manager.
According to the FTC, these dealerships systematically added costly items to sales contracts without consumer consent through a practice known as “payment packing.” This technique involved inflating monthly payments to cover hidden fees for add-ons like chemical coatings, service contracts, and insurance policies, which were either not disclosed or falsely represented as mandatory.
The complaint reveals that up to 75% of customers reported being charged for add-ons they did not authorize or were misled about. Furthermore, the FTC alleges that Black and Latino consumers were disproportionately targeted, paying hundreds of dollars more on average for these add-ons compared to non-Latino White consumers.
The FTC’s action underscores its commitment to protecting consumers from fraudulent practices and discrimination.
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