auto dealer in black and red logo
MenuMENU
SearchSEARCH

Dealer Fined $690,000 for Consumer-Protection Law Violations

A used-car dealership will pay more than $690,000 after a New Jersey Superior Court Judge found that it violated state consumer protection laws and regulations a total of 640 times.

by Staff
September 8, 2015
2 min to read


NEWARK, N.J. — A used car dealership has been ordered to pay $693,645.91 after a Superior Court Judge found that it violated state consumer protection laws and regulations a total of 640 times.

The state’s ten-count complaint against RLMB Inc., filed this March, alleged that RLMB and its manager, Michael L. Bloom, violated the Consumer Fraud Act, the Motor Vehicle Advertising Regulations, the Automotive Sales Regulations, the Used Car Lemon Law (UCLL) and UCLL regulations by, among other things, advertising used motor vehicles for sale without disclosing to consumers the vehicle’s prior damage or prior use; selling vehicles “as is” when they qualified for a warranty; and permitting third parties to advertise, offer for sale and/or sell used motor vehicles on Craigslist that were titled to RLMB.

The dealership and Bloom failed to file a response to the complaint, resulting in  Judge Stephan C. Hansbury entering a final judgment by default. The judgment requires the defendants to pay $640,000 in civil penalties, $31,200.91 in reimbursement to the State for its legal and investigative costs and $22,445 in restitution to seven consumers. By the terms of the judgment, the dealership must comply with all applicable state laws and regulations in its business practices.

“The penalty ordered in this matter is appropriate and should send a clear message to all motor vehicle dealerships that violating our consumer protection laws and regulations comes at a steep price,” Acting Attorney General John J. Hoffman said. “We are continuing to review the practices of new and used motor vehicle dealers to ensure consumers are not taken advantage of.”

“The evidence presented to the court by the Division of Consumer Affairs, resulted in a favorable decision for consumers,” said Acting State Director of Consumer Affairs Steve Lee. “Dealerships must not withhold information from consumers that the dealerships are required by law to provide.”

According to the complaint, RLMB required consumers to sign blank sales documents, did not prominently display the Federal Trade Commission Used Car Buyers Guide in vehicles for sale, did not conspicuously post the total sale price of vehicles, failed to itemize documentary service fees, and did not pay the $.50 administrative fee for each used motor vehicle sold, as required by the UCLL, among other things.

More Compliance

Product & Technologyby StaffFebruary 4, 2026

AAMS Training and Mosaic Compliance Services Merge

The strategic combination is intended to expand technology-driven compliance solutions for the automotive industry.

Read More →
ComplianceOctober 6, 2025

The Jurisprudence of Pricing

Legal concept helps makes sense of California’s recently passed version of the failed federal CARS legislation.

Read More →
Digitalby Hannah MitchellSeptember 5, 2025

Cyber Threats Continue Apace

Hackers, seeing auto retail vulnerabilities in 2024 CDK incident, are taking advantage, data show.

Read More →
Ad Loading...
IndustryJuly 17, 2025

Trump 2.0 and Enforcement Priorities

The upshot is don’t relax, because regulation indeed continues.

Read More →
Blue and white Automotive Service Professionals logo presented over a blue background with various wrench tools.
Complianceby StaffJune 11, 2025

June Is Automotive Service Professionals Month

Observance is opportunity to thank technicians for their crucial role in auto retail.

Read More →
DigitalJune 9, 2025

The Real ID Deadline

Challenges auto dealers may still face verifying identities

Read More →
Ad Loading...
Complianceby StaffApril 28, 2025

Law Firms Tops in Auto Work

They bested all others on value or volume in the first quarter on major deals.

Read More →
Complianceby StaffJanuary 30, 2025

Cox Automotive Releases Compliance Guide

New edition walks auto dealers through relevant regulations for 2025.

Read More →
ComplianceJanuary 1, 2025

Safeguarding Customer Data

Encryption serves a critical role in automotive retail today.

Read More →
Ad Loading...
Complianceby StaffDecember 24, 2024

Trump 2.0 and Retail Automotive

Administration’s plans should generally bode well for the industry.

Read More →