The Federal Trade Commission has accused Asbury Automotive Group Inc. of violating the FTC Act and Equal Credit Opportunity Act in its finance and insurance product sales, allegations Asbury denied in an annual report Feb. 29.
The FTC has threatened to file an enforcement action if the publicly traded franchised auto dealership group fails to settle the matter, Asbury said.
“The Company disputes the FTC’s allegations that it violated the FTC Act and the ECOA, and is currently involved in discussions with the FTC staff regarding the matter,” Asbury wrote to investors in a government filing.
Asbury said the FTC on Aug. 3, 2022, demanded details on “the Company’s corporate structure and operation of six of its dealerships.” The group sent the information and documents from Aug. 1, 2019, to April 24, 2023. Asbury did not reveal the six dealerships; it operates more than 150.
Neither Asbury nor the FTC responded to inquiries seeking further details about the case.
Asbury clashed with the FTC several years ago over the agency’s accusations that the group misled customers by advertising vehicles as thoroughly inspected that had open recalls. Asbury said in the annual report it admitted no wrongdoing but agreed to some disclosure and record-keeping conditions in a 2016 consent order with the agency.
Asbury’s annual report also featured the company’s take on the Combating Auto Retail Scams, or “CARS, Rule” enacted by the FTC in January but delayed from taking effect in July as scheduled pending the outcome of a National Automobile Dealers Association and Texas Automobile Dealers Association petition seeking to have it overturned.
Asbury said the rule “prohibits a broad range of current accepted industry sales and marketing practices and imposes significant new dealer disclosure obligations and record-keeping requirements throughout the vehicle-buying process.” Compliance “would be burdensome and cause us to incur increased costs,” the group said.
Asbury, of Duluth, Ga., ranks No. 5 on Automotive News’ list of the top 150 dealerships based in the U.S. with retail sales of 151,179 new vehicles in 2022.