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Motor Vehicle Commission upholds fines for unlicensed showroom, trims two penalties and moves one case for further review
Summary
The Tennessee Motor Vehicle Commission adopted a legal report targeting unlicensed dealership activity across multiple locations, approved reduced penalties for two matters after staff recommendations, and instructed staff to further investigate a third case before setting a fine.
The Tennessee Motor Vehicle Commission on July 12 adopted its legal report as amended, affirming enforcement action against multiple dealership locations it says were operating outside the commission's licensing rules.
Legal counsel told commissioners that three related complaints involve the same automotive group: an unlicensed showroom where vehicles were being displayed and advertised online, the licensed dealership associated with that group, and a third related location that issued temporary tags. Staff documented online listings that directed consumers to the showroom and said inspectors found test drives were being allowed at the unlicensed location.
Counsel said the staff view remained that each physical location may be subject to its own set of violations and civil penalties. Commission members discussed whether assessing separate fines at related locations amounted to duplication, and legal counsel said the commission's fines are location-based and the office was prepared to defend the enforcement approach if a case went to hearing.
As part of the legal-report vote, the commission approved committee-recommended adjustments: the civil penalties recommended by staff for item 55 and item 72 were reduced from $20,000 to $10,000 each; item 103 was moved to the next report for staff to obtain a vehicle-count and other investigatory records before the commission sets a penalty. An earlier $20,000 consent-order against the unlicensed showroom (item 107) remained on the record; staff said the owner/attorney had been invited to present mitigating information but provided little evidence of compliance or corrective steps.
Commissioners emphasized that staff had repeatedly reached out to the dealer group and that the commission's enforcement goal was to stop unlicensed activity and protect consumers. Legal counsel noted the commission could later assess different penalty amounts if the matters were tried and the tribunal found different facts.
The commission adopted the legal report as amended by roll call (motion made by Commissioner Levy and seconded by Commissioner Galvin). Staff will continue inspections and, where appropriate, refer possible criminal conduct to law enforcement (Tennessee Highway Patrol or the attorney general) for activity that exceeds the commission's administrative authority.
Clarifying details from the meeting record: staff flagged ongoing online advertising tied to the showroom, advised they had met in person with the owner and counsel, and noted new photos showing pricing information in a showroom window that staff said further supported the unlicensed-sales allegation. Commissioners instructed staff to preserve enforcement options and to return to the commission with additional evidence if compliance is not achieved.
