DMV Will Suspend Toyota of Cerritos' Sales for One Day for False Advertisement, Other Charges

    SACRAMENTO, Calif.--Oct. 6, 2002--The California State Department of Motor Vehicles (DMV) announced today it will suspend for one day the vehicle dealer's license of Toyota of Cerritos, located in Los Angeles County, in a case involving false advertising, fraud, as well as contract and document filing violations.
    DMV filed its official allegations against Wheels Inc. on July 12, 2001 charging that the dealership failed to sell vehicles at the advertised price, failed to disclose the advertised price, advertised vehicles at one price and then required buyers to purchase extra accessories in order to get the vehicles at the sales price.
    As part of the agreement, the sales department of Toyota of Cerritos will be closed for one full business day and will also receive a stayed suspension of an additional two days, during which time the dealership will also be on three years of probation. If Toyota of Cerritos gets through the three-year probationary period without additional material violations, the additional two-day suspension will be waived. However, if any additional violations are proved by DMV during the next three years, the Department may unilaterally impose an additional two days of suspension on Toyota of Cerritos.
    During the dealership license suspension, DMV will post notices at the dealership indicating that the sales department has been closed. In addition, the dealer will reimburse DMV $45,000 for its investigative and legal costs, pay a fine of $100,000 and offer restitution to all persons alleged in the DMV accusation to have been injured by the sales practices of Toyota of Cerritos.
    In addition, DMV will also conduct three annual audits of Toyota of Cerritos at the dealership's expense.
    "This action says the Department will consistently take a strong stand against fraud by car dealers in California," said DMV Deputy Director John McClellan. "All dealers, large and small, need to get the message that false advertising and deceptive practices toward consumers just won't be tolerated anywhere in the state. DMV stands committed to protecting Californians against these illegal practices which undermine public confidence."
    The settlement agreement comes after administrative hearings were set to begin in Los Angeles to determine what disciplinary penalty, including a possible suspension or revocation of the dealer license of Toyota of Cerritos should be imposed.
    The DMV licenses drivers, maintains driving records, registers and tracks official ownership of vehicles and vessels, investigates auto and identity related fraud, and licenses car dealers, driving schools and traffic violator schools. The Department is under the Business, Transportation and Housing Agency, which is under Secretary Maria Contreras-Sweet. Additional information about the DMV is on the Department's Website, which is located at www.dmv.ca.gov.