Faulkner Honda settles with AG over deceptive warranties

After an investigation by the state’s attorney general, a Dauphin County automotive dealership has agreed to pay restitution to customers who were sold valueless dealership warranties.

Attorney General Josh Shapiro said that Faulkner Honda in Swatara Township, for an undefined period of time, deceptively marketed, negotiated and sold dealership warranties to customers. Customers paid about $1,000, on average, for those warranties which were sold on top of the manufacturer’s warranty in the advertised price of the vehicle.

Shapiro said these so-called upsell warranties were often sold to customers entering into short-term lease agreements for new vehicles, but that they had no meaningful value. Honda vehicles already come with a standard, 36-month, 6,000-mile manufacturer’s warranty that is more comprehensive than the Faulkner warranty.

He said Faulkner violated the Automotive Industry Trade Practices regulations and the Pennsylvania Consumer Protection law.

“This dealership took its customers for a ride by encouraging them to purchase an additional warranty that had no value,” Shapiro said. “My office is fighting to ensure that consumers are able to make informed purchases and protect against deceptive sales tactics, which bilk customers out of their hard earned money.”

Shapiro’s office is asking any customers that believe they were a victim of this sales tactic to contact his office. Faulkner Honda officials were not immediately available for comment. According to a report by The Philadelphia Inquirer, Faulkner officials have denied any wrongdoing but declined further comment.

There is a 90-day window to file a complaint with the Bureau of Consumer Protection at www.attorneygeneral.gov, by calling 800-441-2555 or emailing [email protected]