Last month, the New York City Department of Consumer and Worker Protection (DCWP) announced a significant enforcement action against 2541 E Tremont Ave Auto, LLC, which operated as “Honda of the Bronx.” DCWP alleged that the Bronx-based used auto dealer engaged in a pattern of deceptive practices, including bait‑and‑switch pricing, hidden financing costs, and “cancellation traps,” in violation of New York City’s consumer protection laws. The dealership admitted wrongdoing and agreed to pay a total of $129,999, consisting of $61,499 in civil penalties and $68,500 in restitution to affected consumers.

Alleged Misconduct: Bait‑and‑Switch Pricing, Hidden Costs, and Cancellation Traps

According to DCWP, the investigation uncovered more than 350 violations over a multi‑month period, reflecting systemic noncompliance rather than isolated issues. The agency found that vehicles were frequently advertised at one price but sold at a higher price, affecting dozens of customers. DCWP also determined that the dealership sold vehicles while not properly licensed by the city, a threshold requirement for lawfully engaging in used auto sales in New York City.

The investigation further revealed failures to provide required documents explaining consumer rights, as well as deficiencies in financing disclosures. Some customers were allegedly kept in the dark about loan terms and total costs, undermining the transparency required under local law and echoing the kinds of issues that can raise federal Truth in Lending and Unfair or Deceptive Acts or Practices (UDAP) concerns in other contexts. DCWP also focused on “cancellation traps,” asserting that the dealer withheld cancellation options and forms, effectively locking consumers into contracts and making it difficult to unwind transactions or cancel add‑on products.

As part of the resolution, the dealer agreed to implement “all‑in” pricing, meaning that advertised prices must reflect the full, non‑contingent cost of the vehicle, with any mandatory fees included rather than added at signing. The order also requires the dealer to provide cancellation options and forms and to honor consumers’ rights to cancel where applicable, addressing what DCWP characterized as an intentional effort to trap buyers in unfavorable deals.

Part of a Broader DCWP Clampdown on Used‑Car Practices

DCWP framed this action as one piece of an aggressive, ongoing enforcement agenda targeting deceptive practices in the used‑car market. The agency emphasized that buying a car is one of the largest financial decisions many families make, and that rising vehicle prices and a tight used‑car market amplify the harm when buyers are overcharged or misled. DCWP reports that, over the past five years, it has secured approximately $1.97 million in restitution and $6.53 million in civil penalties in used‑car cases, investigated 106 used car dealerships, and assisted more than 675 impacted consumers.