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Acting state Attorney General John Hoffman today announced a $1.8 million settlement reached with eight N.J. car dealerships and their two owners for alleged deceptive practices.

(John O'Boyle/The Star-Ledger)

TRENTON — Eight New Jersey car dealerships and their owners have agreed to pay $1.8 million to resolve allegations ranging from deceptive sales tactics to failing to disclose mechanical defects or past damage to used cars, state authorities said today.

The dealerships and owners — Carmelo Giuffre, of Brooklyn, N.Y., and Ignazio Giuffre, of Colts Neck — also agreed to resolve complaints filed by 45 customers by providing restitution or other relief under a binding arbitration process.

Dealerships included under the deal were Route 22 Toyota, Route 22 Honda, Route 22 Nissan and Route 22 Kia, all in Hillside; Hackettstown Honda; Hudson Honda in West New York; and Freehold Hyundai and Freehold Chrysler Jeep.

As part of the agreement, the companies and owners admitted no guilt and agreed to settle to avoid "costly and prolonged litigation," a spokesman, Rich Tauberman, said. He added that the dealerships now offer only one price to eliminate negotiations.

"The Route 22 dealerships are confident that offering every customer the same price based on independent and public, third-party data will promote transparency and alter the culture in automotive sales in a way that inspires greater consumer confidence," Tauberman said.

Your comments: How to avoid auto scams after 8 N.J. dealerships pay $1.8M for alleged deception

State consumer affairs officials said they logged numerous complaints against the dealerships, including failing to honor negotiated or advertised prices for vehicles and charging customers for supplemental warranties or other "after-sale" items without their consent.

Customers also alleged that the dealerships failed to refund deposits for canceled or aborted sales and advertised cars without providing vehicle identification numbers, preventing them from checking their history of damage and use, authorities said.

In February 1999, the same owners and three of the dealerships entered into a settlement in which they agreed to pay $450,000, including $250,000 as a compensatory fund for customers, resulting from similar complaints, authorities said.

Under the new settlement, the companies must hire a state-approved compliance monitor for two years to oversee operations and report back to the state Division of Consumer Affairs.

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