The B.C. Motor Vehicle Sales Authority has fined the owners of Northland Chrysler Jeep Dodge $44,000 and its former principal, Brent Marshall, $3,550 for engaging in deceptive practices.
The penalties, issued Aug. 13, are in relation to the sale of four used vehicles advertised in a June 2013 flyer distributed to communities outside of Prince George.
In all, seven fines were assessed, three of them related to the sale of a 2006 Honda Civic. Northland was fined $6,000 and Marshall $600 for failing to advertise the Civic on the lot at the same price advertised in the flyer.
It had been advertised for $9,988 but during the June Mega Sale, where dealers gather at the CN Centre parking lot to sell vehicles, the sticker price was $14,888 and it was sold for $13,500 plus the administrative fee for a total base price of $14,089 to a couple who had not seen the flyer.
Using the image of a four-door sedan when, in fact, the Civic was a two-door coupe, yielded a further $2,500 penalty for Northland and $250 for Marshall.
Northland was fined $6,000 for misrepresenting a price advantage, as the couple was told they would be getting a "really good deal" and a "family deal" on the car.
Marshall was not fined on that count.
Failing to price a 2009 Chevrolet Impala on the lot at the same price advertised in the flyer led to another $6,000 fine for Northland and $600 for Marshall.
The Impala was advertised for $10,988 but was sold for $12,089 at the Northland lot. The sticker price was $14,800 and the salesperson accepted an offer of $11,500 while the administrative fee was added on.
Charging the purchaser of a 2009 Dodge Grand Caravan a $589 administrative fee on top of the advertised price without advising the purchaser that such a fee would be levied led to a $2,500 fine for Northland. Marshall was not fined on that count.
Northland was fined $1,000 and Marshall $100 for describing a 2013 Dodge Journey in the flyer when the actual vehicle for sale was a 2012 model.
On top of those fines, Northland was levied a $20,000 penalty and Marshall $2,000 for "general conduct calculated to deceive and mislead customers."
The MVABC, the regulatory agency authorized by the provincial government to administer and enforce the Motor Dealer Act, found in May 2014 that Northland's and Marshall's actions violated portions of the Business Practices and Consumer Protection Act. But, for a series of reasons, a hearing on the penalties was delayed until May 26-27 this year.
The MVSA had been seeking $134,000 in administrative penalties, a seven-day suspension of the dealer's registration and a compliance order.
Northland largely consented to the terms of the compliance order, opposed suspension of its registration and proposed penalties in the range of $5,000.
Marshall, meanwhile, voluntarily gave up his salesperson licence in December 2014 and no longer works at Northland.
And Northland has voluntarily reimbursed the purchasers who bought the vehicles at issue.
"These factors have caused me to reduce somewhat the amount of penalties I might have otherwise imposed," acting MVSA registrar Wendy Baker said in the decision.
The decisions can be found directly below this story in the 'Related to this story' area.
