False Advertising Claimed—

Subpoenas Issued For Crabtree Dealership Documents

HARTFORD — Attorney General Richard Blumenthal commenced legal action September 21 to enforce subpoenas against Crabtree Subaru and Crabtree Dodge of Shelton for failing to provide documents requested under a Department of Motor Vehicles (DMV) subpoena.

Mr Blumenthal and Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr, announced a lawsuit against the auto dealer this summer, alleging almost 300 instances of false and misleading advertising since 2004.

The state investigation into Crabtree is continuing, and could result in additional allegations against the company, including violations of motor vehicle laws, Mr Blumenthal and DMV Commissioner Robert M. Ward said.

The enforcement action announced this week involves subpoenas for documents in which Crabtree has failed to respond — even after receiving an extension to comply. A hearing is scheduled on the subpoena enforcement matter for 9:30 am October 15 in Superior Court in Hartford.

“My action seeks penalties and a court order compelling Crabtree to comply with the state’s demand for documents,” Mr Blumenthal said. “Crabtree’s defiance of state subpoenas is unacceptable. Even while we pursue Crabtree in court for hundreds of instances of alleged false and misleading advertising, the company’s brazen law breaking continues. Our investigation into Crabtree is continuing aggressively, and our lawsuit will be expanded to include any new and emerging allegations. Tactics by Crabtree to delay or avoid our ongoing investigation will not be tolerated.”

DMV Commissioner Robert M. Ward said, “Consumers’ interests is our focus and we cannot tolerate instances of a business ignoring the law and requirements of a subpoena. Action must be taken when that occurs.”

Mr Blumenthal’s pending lawsuit charges Crabtree car dealerships with making at least 293 illegal or false claims — loans with zero or $1 down payments, payments as low as $37 a month, limited time discounts as deep as 70 percent — in newspaper, television, and radio advertisements between 2004 and 2007. The dealership also advertised zefo percent financing and rebates up to $7,000 without fully disclosing conditions and restrictions.

Some ads included phony testimonials from nonexistent customers. The lawsuit alleges that virtually no one received the deep discounts or special deals touted in the ads.

Crabtree’s alleged false or illegal claims, which Mr Blumenthal is pursuing in the pending lawsuit, include:

*Consumers could pay as little as $37 a month if they agreed to “road test” a “pristine” new or used car up to four years and allow the dealership to regularly “inspect” the vehicle. In fact, the $37 a month payment was only for three to six months after which the consumer had to make the full payments.

*The dealership claimed to offer consumers for-a-limited-time discounts available to US government employees. In reality, the dealership did not offer such discounts.

*Consumers could receive 50 to 70 percent off “original prices” on vehicles the dealership said it had purchased from recently liquidated local and national rental car companies. In fact, the dealership did not buy vehicles from bankrupt rental car companies.

*Similar bogus claims about obtaining and offering large discounts on repossessed or bank-owned vehicles.