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The Federal Trade Commission and State of Wisconsin are taking action against Wisconsin auto dealer group Rhinelander Auto Center, its current and former owners, and general manager Daniel Towne for deceiving consumers by tacking hundreds or even thousands of dollars in illegal junk fees onto car prices and for discriminating against American Indian customers by charging them higher financing costs and fees.
The defendants have agreed to proposed court orders that will require Rhinelander’s current owners and Towne to stop their unlawful practices and provide $1.1 million to be used for refunds to consumers.
In October 2024, the Federal Trade Commission sent more than $1 million in refunds to consumers who were allegedly harmed by Rhinelander Auto Center’s junk fees and discriminatory practices.
The FTC is taking action against rideshare operator Lyft for making deceptive earnings claims about how much money drivers could expect to make per hour and how much they could earn in special incentives.
Lyft has agreed to a proposed settlement that would require its claims about drivers’ pay to be based on typical earnings. In addition, Lyft has agreed to back up with evidence any claims it makes about drivers’ pay, clearly notify drivers about the terms of its “earnings guarantee” offers, and pay a $2.1 million civil penalty.
The U.S. Department of Justice filed the lawsuit and proposed settlement upon notification and referral from the FTC.
The Federal Trade Commission has taken action against coffee shop franchise Qargo Coffee and its founders for failing to disclose critical information required by the Franchise Rule, including one founder’s ties to burger franchise BurgerIM, leaving prospective franchisees in the dark when deciding whether to invest in the franchise.
In its complaint, the FTC alleged that Qargo and founders Mark Bastorous, Bernadette Bastorous, and Samir Shenouda violated the FTC’s Franchise Rule—the agency’s second case in recent years alleging violations of the Franchise Rule.
Under proposed order, the company and its founders are required to pay $30,000, provide franchisees the right to rescind contracts, and void noncompete agreements.
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