State Attorney General's Staff Lists Auto-Related Complaints

After a home, what's the second-biggest purchase you'll ever make?

If you said a car, go to the head of the class. It follows that purchases of this magnitude could be a likely area for customer complaints.

Every year when the attorney general's staff presents a reprise of the previous year's complaints, auto-related cases are among the top five categories of consumers' complaints.

Last year was no exception: 16,252 consumers filed written complaints with the attorney general; another 173,075 phoned with inquiries or requests for referrals.

Of the top 20 complaint categories, here are the first five:

1. Motor vehicle dealers, 1,618.

2. Retail organizations, 1,597.

3. Motor vehicle repair, 1,562.

4. Credit, 1,408.

5. Contractors, 741.

Based on those statistics you shouldn't be surprised to learn that of 35 legal actions filed last year by the attorney general's staff, eight - or almost 23 percent - were auto-related.

The cases included allegations of violations of the state's regulations on auto advertising, odometer rollbacks, the implied warranty law, and problems with extended service warranties and sales and repairs in a transmission shop.

Among the most controversial were lawsuits against four Western Washington auto dealers alleging violations of the advertising regulations, and a lawsuit alleging that a Lynnwood dealer ``had reason to know'' he was selling cars with rolled-back odometers but didn't disclose that information to consumers.

These cases didn't go to trial. The firms agreed to settlements, in which they paid civil penalties and attorneys' fees, but did not admit to any violations.

There has been some grumbling in the auto industry that Attorney General Ken Eikenberry sued over technical violations and ``honest mistakes.'' And that the law on auto advertising is vague and needs clarification.

But the state contends consumers have a right to know which car is being advertised and what the financial terms are.

For some consumers, buying a vehicle will be their largest purchase: they cannot afford to buy a home. So truth in advertising is vital.

The attorney general brought the charges after printed ads were monitored from 1986 through 1989. Some observers feel television advertising should have been included. But representatives of the attorney general said the logistics of monitoring television make that impossible at this time.

Some dealers also have questioned why the state brought the charges when consumers had not complained about their firms. The state contends there do not have to be consumer complaints for it to bring action.

Complicating the picture is the fact that some state regulations on auto advertising have changed since the monitoring project began.

For example, now a dealer may use a vehicle-identification number (VIN) or advertise the number of vehicles available and state that the VINs are available from the dealer upon request. Previously the dealer had to include the VINs.

Other advertising requirements that may be of interest to consumers are:

-- Pictures used in ads for new cars must ``substantially show the same vehicle offered for sale.''

-- Pictures in ads for used vehicles must be the vehicle offered for sale.

-- Dealers may not sell a particular vehicle at a higher price than is advertised.

Pierre Enterprises Inc., which sells Ford, Dodge, Hyundai and Suzuki, was among dealers sued by the state. Pierre Enterprises settled out of court for $17,000.

``They (the state) won't tell us what is legal and what isn't. You advertise and they take exception to it,'' Jamie Pierre said.

The state's complaint against Pierre Enterprises was over specific wording such as ``dealer participation in interest rate.''

That verbiage plus numerical prices doesn't make the financial terms clear to the consumer, said Donna R. Fisher, an assistant attorney general.

Another problem with Pierre Enterprises and other firms involved ads that stated, ``0 down,'' preceded by a dollar sum and ``rebate.''

It's unclear to the consumer when the rebate is calculated, Fisher said.

Fisher said an itemized price ticket would solve the problem, making terms, prices and rebates clear.

Similar complaints were made by the state about Evergreen Ford of Bellevue. Evergreen settled for $7,500.

Evergreen's ads listed a price such as $10,913, then stated ``after rebate.'' Again, Fisher says, that's not sufficient information for the consumer. And if a dealer uses certain ``credit triggering terms,'' he must give more details to make the prices clear.

The AG also took action against Tacoma Dodge, Inc. and Tacoma Subaru Inc., and Wilen-Cornforth, a Pierce County dealer.

The AG's auto advertising monitoring project continues.

Late last year the state also sued Kompact Kar Korner of Lynnwood, alleging the dealership sold used vehicles which it had reason ``to know had rolled-back odometers.''

The state did not allege that Kompact Kar Korner had turned back the odometers.

State law requires that there be documentation when a dealer obtains cars from an auction or other dealer, and the information be passed on to consumers so they know a vehicle's mileage.

Kent Chaplin, principal owner of the Lynnwood firm, said the items cited as violations were bookkeeping errors. He agreed to pay the state $45,000 in civil penalties.

The state contended the dealer did have the information and hadn't passed it on to consumers.

One complaint did precipitate a look at Kompact Kar Korner's records, said a source from the AG's office. That complaint did not involve a violation, the spokesman said, but it did lead to a more detailed investigation.

It's difficult for the average consumer to know when odometers have been rolled back.

Here are some tips on how to protect yourself on the mileage issue, courtesy of Tim Schindele, an investigator for the attorney general:

-- Have the vehicle inspected by an independent mechanic for signs of wear that may be inconsistent with mileage on the odometer.

-- Request the name of the previous owner and contact that person. (It is a violation of state laws for a dealer to refuse to give this information.)

-- If the vehicle was bought by a dealer through an auction, check with the state Department of Licensing.

-- Look for service stickers and/or work orders inside vehicle doors, under the hood, seat, or in the glove box.

And, as usual, caveat emptor: Let the buyer beware.

Shelby Gilje's Troubleshooter column appears Tuesday, Thursday and Sunday in the Scene section of The Times. Do you have a problem? Write to Times Troubleshooter, P.O. Box 70, Seattle, WA 98111. Include copies, not originals, of documents indicating payment, guarantees, contracts and other relevant materials.