Sales of Automobiles

Odometer Fraud

One common complaint is the turning back or replacement of odometers to give the impression that the automobile has less wear and tear and greater remaining useful life.  Changing the odometer is a crime in Oregon and Washington and also entitles the victim to civil damages. The problem with these cases is that reputable dealers normally do not change the odometers. Usually there is a middleman and the dealer claims ignorance. The case usually involves trying to prove that the dealer "knew" or "ignored"  the fraud because the price it paid was below market and the seller was of questionable reputation. If the car was sold by a lower tier dealer there is a risk that it and its agents do not have assets to respond to a judgment. The victim is entitled to damages (difference in market value of the car as represented versus actual value) plus attorney fees and costs. Sometimes the dealer substituted the car with a better model to settle the claim.

Sticker Prices

The Automobile Information Disclosure Act (AIDA), 15 U.S.C. §§ 1231-1233 requires the affixing of a retail price sticker to the windshield or side window of new automobiles indicating the Manufacturer's Suggested Retail Price (MSRP), commonly referred to as the "sticker price."  The AIDA is also known as the Price Sticker Act or the Monroney Act for Senator Mike Monroney who was the chief sponsor of the Act.  The Act also requires additional information, such as a list of any optional equipment offered or transportation charges.  Unfortunately violations of the Act do not give rise to actions by injured persons.  The dealer may be cited by the federal government.

Some states have made violation of the AIDA a violation of state law giving rights to those injured by the dealers’ noncompliance.  Oregon has addressed the issue through a Department of Justice Rule.  Washington has not specifically addressed the problem but violations of the AIDA may be violations of the Consumer Protection Act.