By: Richard L. Smith
A Union County used car dealership has been ordered to pay more than $840,000 after a court found it engaged in years of deceptive business practices that defrauded customers and violated prior state enforcement orders.
According to a statement released by the New Jersey Attorney General’s Office, the judgment was secured by Acting Attorney General Jennifer Davenport and the Division of Consumer Affairs against Federal Auto Brokers, Inc., which operates as BM Motor Cars in Rahway.
The Superior Court ruled that the dealership failed to disclose essential vehicle information, concealed pricing details in advertisements, and repeatedly violated a 2018 Consent Order previously issued by the Division.
The conduct was found to violate New Jersey’s Consumer Fraud Act as well as state and federal motor vehicle regulations.
Court records show the dealership amassed 511 violations over a two-month period, a volume the court described as a clear “pattern of non-compliance” and a lack of good-faith business practices.
The ruling cited BM Motor Cars’ continued misconduct despite prior enforcement actions as justification for enhanced penalties.
Under the judgment, the dealership must pay a $793,500 civil penalty and reimburse the State $49,276.24 for attorney’s fees and investigative costs.
The court also issued an injunction prohibiting the dealership from engaging in deceptive practices and requiring full compliance with all applicable laws going forward.
State officials said the dealership hid mandatory dealer fees in online listings, improperly required customers to waive inspection rights, failed to provide required odometer disclosures, and continued selling so-called “gray market” vehicles without proper warnings—cars that may not meet U.S. safety or emissions standards and can result in costly repairs for buyers.
“Access to a reliable and affordable vehicle is essential for New Jersey families,” Davenport said in the statement, adding that businesses that mislead consumers or ignore court orders will face significant consequences.
Jeremy E. Hollander, Acting Director of the Division of Consumer Affairs, said the ruling reinforces the State’s commitment to transparency and fairness in the motor vehicle sales industry.
The case stems from a 2023 lawsuit filed after the Division received dozens of new consumer complaints, despite a 2018 Consent Order that had already penalized the dealership and required corrective action.