PROVIDENCE — The Attorney General's Office announced it has reached an agreement to resolve three enforcement actions against Rhode Island car dealerships, including one located in East Providence, for charging automatic add-ons and fees not included in the advertised price and other advertising practices.

The agreement, called an Assurance of Voluntary Compliance, was filed in Rhode Island Superior Court on Wednesday, July 26, alleging Grieco Honda and Grieco Hyundai, both in Johnston, and Grieco Toyota, the showroom on Taunton Avenue in East Providence, engaged in sales and pricing tactics that violated the Deceptive Trade Practices Act (DTPA).

Those sales and tactics included charging more for vehicles than they were advertising on their website, automatically charging every customer a fee for a $249 paint and fabric spray (a “Zurich Shield”), and describing vehicles as available for “auction” or “wholesale” prices.

The agreement settles two lawsuits brought by Attorney General Peter Neronha in March of 2022 against the dealerships.

The three dealerships will pay a combined $557,815 to resolve the claims brought by the Attorney General. This includes $457,815 in direct restitution to consumers and $100,000 to the Office of the Attorney General to pay for the costs of its investigation and suits.

The agreement entered by the court also prohibits the dealerships from engaging in these practices in the future. The Grieco dealerships will refrain from charging consumers for any products or services without first obtaining their express informed consent and will not advertise any price for a vehicle unless it is available for purchase at that price and as described in the advertisement. The Grieco operations had voluntarily agreed to implement many of these changes after the Attorney General filed suit in March 2022.

According to the filing, the dealerships were automatically charging every customer for a $249 paint and fabric spray and warranty product known as a “Zurich Shield.” This service and its costs were not included in advertisements, and customers would only learn about this fee later in the purchasing process. Customers who paid for the basic Zurich Shield product since January 1, 2021 at one of these Grieco dealerships will be able to keep the product, including the warranty, and also receive a check worth 28% of the price of the product ($69) from Grieco. The $69 payment represents what consumers paid to Grieco over and above the cost of the product itself.