State, Berlin City Auto settle warranty case
Berlin City Auto Group in Portland will pay $5,000 to settle a warranty case with the Attorney General’s Office. The company must also stop telling customers that only manufacturers can be held liable for vehicle defects.
The company was accused of “unfair and deceptive” warranty practices for telling customers that its dealerships in Portland and South Portland are not responsible for serious defects in new vehicles, according to The Forecaster. Berlin City did not admit wrongdoing, but did agree to the $5,000 civil penalty and to contact past customers to inform them they can seek reimbursement for repairs that should have been covered by warranties.
According to a press release from Attorney General William Schneider, the state’s implied warranty law protects consumers for up to four years after the purchase of all household or personal goods, except used cars. “The dealer is required to share the responsibility for repair if a new car sold to a consumer turns out to have serious problems,” he said in the release.
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