Editor's Note: This story has been updated to include the response from Rosado Group Inc.
(WBRE/WYOU) — Attorney General Dave Sunday announced a $130,000 settlement with a Pennsylvania car dealership group, regarding their alleged deceptive sales tactics and inflated prices.
The Office of Attorney General stated in the settlement that numerous dealerships under the Rosado umbrella inflated vehicle prices, without customer knowledge, and manipulated credit applications to sell more vehicles.
"This dealership network engaged in a pattern of deceptive practices that prioritized their own sales figures over transparency to customers who deserve fair and honest treatment. Many customers discovered higher final costs due to the dealership disguising add-on costs that they were then reluctant to remove when discovered. I appreciate the Rosado Group taking steps, via this settlement, to improve their overall business approach," stated Attorney General Sunday.
The Rosado Group owns numerous dealerships, including the following:
Dickson City Hyundai
Lehighton Kia
Milford Chrysler Dodge Jeep Ram
Performance Kia
Two winning lottery tickets sold in Pa.
As part of the settlement agreement, the businesses will pay $130,000 to the Commonwealth, which includes $100,000 in restitution to impacted Pennsylvania consumers, the release states.
"The Rosado Group has agreed as part of the settlement to hire a compliance officer to assist Rosado in bringing their business practices into full legal compliance, and will cooperate with the Office of Attorney General Bureau of Consumer Protection in the hiring of that officer", Sunday stated in his media release.
The Commonwealth will provide restitution to known consumers who filed a complaint with the Office of the Attorney General.
Many of the Rosado dealership practices were violations of the Pennsylvania Automotive Industry Trade Practices, Pennsylvania Unfair Trade Practices and Consumer Protection Law, the Office of Attorney General reported.
28/22 News has reached out to Rosado Group Inc. for comment and they provided the following response:
"The Rosado Group has reached an agreement with the Pennsylvania Office of Attorney General to resolve a regulatory matter. This agreement includes no admission of wrongdoing.
We chose this resolution because dragging out a court fight would waste time and money that would be better spent on our customers and our community.
That’s why we’re doubling down on customer care. Every used car we sell that does not have a manufacturer's warranty, now comes with a three-month, 3,000 mile powertrain warranty at no additional cost. On top of that, we’re strengthening our training programs and hiring staff soley dedicated to compliance, ensuring every step of the buying process is clear, fair and transparent.
For decades, our family of dealerships has invested in Pike, Monroe, Lackawanna and Carbon counties. Our customers are and have always been our top priority — nothing will distract us from standing by the people who count on us.
Our message is simple: we’re here for our customers. Always have been. Always will be."
— Bill Rosado, Founder and President, The Rosado Group
