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Motor Vehicle Commission fines dealership group $38,000 for unlicensed sales activity, deceptive advertising
Summary
The Tennessee Motor Vehicle Commission voted to impose civil penalties on a dealer group after legal staff reported unlicensed sales activity at a downtown showroom that misled consumers and involved misuse of temporary tags. The commission approved a $20,000 penalty for the unlicensed showroom and continued related complaints against affiliated,
Legal staff presented a summary of an investigation into alleged unlicensed sales activity, deceptive advertising and related recordkeeping problems involving three related entities owned by the same automotive group. Erica Smith (legal staff) told the commission investigators found unlicensed sales activity at a downtown showroom, confusing online advertising that made the showroom appear to be a licensed dealer, and use of temporary tags issued by a different licensed dealership.
Smith recommended a maximum-penalty approach given staff’s view of intentional violations and repeated warnings: a $20,000 civil penalty for the unlicensed showroom (respondent A), a $15,000 civil penalty recommendation for the affiliated licensed location (respondent B), and a $3,000 civil penalty for the licensed…
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