Black and Hispanic customers had to pay more at car dealer, Massachusetts lawsuit says
A car dealership is accused of discriminating against Black and Hispanic customers by having them pay hundreds of dollars more for add-on car parts in Massachusetts.
On average, Black and Hispanic individuals had to pay $500 or $400 more, respectively, than white customers for add-on products, including car paint protection and remote starters, at Jaffarian Volvo Toyota in Haverhill for two years, according to a Sept. 19 news release from the state attorney general’s office.
“Purchasing a vehicle is already a significant financial decision for many families and individuals — the last thing they should be worried about is unfairly paying more for a product because of their race or national origin,” Attorney General Maura Healey said in a statement.
The car dealership made $170,000 in “extra profits” by overcharging Black and Hispanic consumers through pricier markups based on a review of sales records between 2016 through 2018, according to a complaint filed Sept. 15 in Essex Superior Court.
“These amounts are 54 and 45 percent higher than the profits on white consumers’ purchases,” the complaint states.
McClatchy News contacted the car dealership for comment on Sept. 20 and is awaiting response.
The lawsuit accuses Jaffarian’s Service Inc. of encouraging workers to sell add-on car products at “discriminatory, discretionary” markups, which were not “regularly” disclosed to buyers in person.
The car dealership’s finance managers made more money by selling the add-on car parts at higher prices, according to the complaint.
If a white customer bought add-on car products and was charged an average markup of under $1,000, the average Black customer would be charged nearly $1,500 while a Hispanic customer would be charged $1,308 at Jaffarian’s Service Inc., according to the lawsuit.
In general, car dealerships make more money on extra car products compared to selling an actual car, according to the attorney general office’s release.
“Jaffarian has not provided its finance managers or other staff with any training, guidance, or written policies on their obligation to avoid making pricing decisions based on unlawful factors such as the race, ethnicity, or gender of the consumer,” the complaint states.
The lawsuit seeks to stop the car dealership from continuing its alleged racial discrimination of consumers and also seeks civil penalties, restitution to customers and more.
The attorney general’s office accuses the company of violating Massachusetts’ Consumer Protection Act and the Public Accommodations Law, according to the release.
Haverhill is about 35 miles north of downtown Boston.
This story was originally published September 20, 2022 at 1:58 PM with the headline "Black and Hispanic customers had to pay more at car dealer, Massachusetts lawsuit says."
.jpg)