In re: IN THE

KOONS OF REISTERSTOWN ROAD, WC.

VaKOONSKIA CONSUMER PROTECTION
9610 Reisterstown Road
OwingsMills, MD21117 DIVISION

OFFICE OF THE

ATTORNEYGENERAL

ASSURANCEOF DISCONTINUANCE

This Assurance ofDiscontinuance ("Assurance") is made and entered into by the Office of

the Attorney General, Consumer Protection Division (the "Division") and Koons ofReisterstown

Road, Inc., trading as Koons Kia("Koons Kia"). The Division and Koons Kiaagree asfollows:

1. The Division is responsible for enforcement of Maryland consumer protection

laws, including the Maryland Consumer Protection Act ("CPA"), Md. Code Ann., Corn. Law §§

13-101 through 13-501.

2. Koons of Reisterstown Road, Inc. is a Maryland corporation that operates an

automobile dealership under the name of Koons Kia offering and selling Kia vehicles to

consumers.

THE DIVISION'SALLEGATIONS

3. Maryland law requires automobile dealerships that advertise vehicles for sale to

include in the advertised price the full delivered cash price that a customer must pay, except for

taxes and title fees. Further, for new vehicles, that advertised price must also include any dealer

processing charge and freight charge, unless the dealership clearly and conspicuously discloses the

amount ofthese chargesin the advertisement.

 4. The Consumer Protection Act makes it an unfair, deceptive or abusive trade

practice to make statements that are capable ofmisleading consumers or to fail to disclose material

facts, the omission of which deceives or tends to deceive consumers.

5. The Division Alleges that Koons Kia charged consumers a purchase price over the

advertised price.

6. The Division further alleges that Koons Kiacollected additional charges for freight

even though the charges were already included in its advertised price.

7. The Division further alleges that Koon's Kia's practice of charging more than the

advertised price is an unfair and deceptive trade practice that is prohibited by the Consumer
Protection Act.

8. The Division finally alleges that Koon's Kia's practice of charging consumers an

additional fee for freight when those charges were already included in the advertised price ofthe

vehicle is an unfair and deceptive trade practice that is prohibited by the Consumer Protection Act.

KOON'SKIA'SDENIALS

9. Koons Kia asserts that, at all times relevant to the Division's inquiry, Koon's Kia's

advertising practices complied with all applicable laws in Maryland. Koons Kia denies that the

Manufacturer's Suggested Retail Price ("MSRP") wasits advertised price andthat it violated any
provision of the Consumer Protection Act.

10. Koons Kia agrees to the terms of this Assurance, without trial of any issue of fact

or law, for the purpose ofresolving its dispute with the Division regarding the above allegations.

Nothing in this Assurance shall constitute an admission of liability.

 DEFINITION

11. "Advertise, " "advertised, " and "advertisement" as used in this Assurance shall

include any graphic, electronic, written, recorded, oral or other type of promotion or offer of a

vehicle for sale.

12. The "advertisedprice" as used in this Assuranceis the price a vehicle is advertised

for sale. The advertised price will be the Manufacturer's Suggested Retail Price ("MSRP") if the

MSRP is displayed as the advertised price absent a different dealer selling price. Advertised price

includes any vehicle price provided in any advertisement, web site, or vehicle window sticker.

CEASEAND DESISTPROVISIONS

13. The provisions of this Assurance shall apply to Koons Kia and its officers,

employees, and agents.

14. The provisions of this Assurance shall apply to Koons Kia's advertisement of

vehicles to consumers residing in Maryland or to consumers from its dealership located in

Maryland.

15. Koons Kia shall not make a representation to consumers that has the capacity,

tendencyor effect ofmisleadingconsumers.

16. Koons Kia shall not fail to state a material fact, the omission ofwhichdeceives or

tends to deceive consumers.

17. Koons Kia shall not advertise the price of a vehicle for sale unless that advertised

price is the full delivered cash price, which the customer shall pay, except for taxes andtitle fees.

18. Koons Kia shall not charge consumers any dealer processing charge or freight

charge in addition to the advertised price unless the charge is disclosed in accordance with
Maryland law in the advertisement.

19. Koons Kia shall not charge consumers any freight charge that is already included

in the advertisedprice of a vehicle for sale.

RESTITUTION

20. Within thirty (30) days from the date of this Assurance Koons Kia shall pay the

Division restitution equal to the amount consumers paid it in connection with their purchase of

vehicles of: (1) all fees and other amounts charged-other than for taxes and title fees, and any

dealer processing fee-that were not included in the advertised price ofthe vehicle; and (2) fees

for freight when such fees were already included in the advertised price of the vehicle (hereinafter

the "RestitutionAmount").

21. The Division shall distribute the Restitution Amount to consumers included on the

list provided by Koons Kia who were impacted by Koons Kia's practices alleged herein.

22. Within thirty (30) days of the date of this Assurance, Koons Kia shall provide the

Division with a list ofMaryland consumers who paidthe fees andother amounts that comprise the

Restitution Amount and who are entitled to receive a restitution payment under the terms of this

Assurance (the "Consumer List"). For each consumer whosename is containedin the Consumer

List, Koons Kia shall provide the following information in the form of an Excel spreadsheet, with

each item below contained in a separate field:

(i) the consumer's name;

(ii) the consumer's last known street address;

(iii) the consumer's last known city, state and zip code;

(iv) the consumer'sphone number(s);

 (v) the consumer's email address(es);

(vi) the consumer's Social Security number;

(vii) the advertised price ofthe vehicle, including any manufactiu-er's suggested

retail price (MSRP) if there was not a different dealer sale price

advertised;

(viii) the amount ofall fees and other amounts, other thantaxes, title fees, and

dealerprocessingcharges,thatthe consumerpaidthat were not included

in an advertisedprice ofthe vehicle; and

(ix) the amount of freight fees that the consumer paid if such fees were already

included in the advertised price.

23. The Division shall perform a claims process that will be conducted by a person or

persons (hereinafter the "Claims Administrator") to identify and pay restitution to eligible
consumers.

24. The Claims Administrator may be an employee ofthe Division or an independent

claims processor.

25. The claims process shall consist of identifying and locating each consumer who is

eligible to receive restitution pursuant to this Assurance, gathering all information necessary to

detennine the amounts of restitution due to each consumer eligible to receive restitution, and the

mailing ofrestitution payments to all such consumers and any other mailings that assist the claims

process.
 26. If it is possible to determine a consumer's entitlement to relieffrom sources other

than the consumer, that relief shall be provided to the consumer without the necessity of the

consumer submitting informationin the claims process.

27. The ClaimsAdministratorshallperformthe abovedutiesunderthe supervisionand

control of the Division.

28. KoonsKiashall givethe ClaimsAdministratorcomplete accessto all records, data,

andpersonnel necessaryfor the Claims Administratorto complete his or her duties.

29. If, at any stage of the claims process, it is determined that the Division will require

additional payments from Koons Kiato satisfy all consumer restitution due under this Assurance,

Koons Kia shall pay the Division additional restitution in the amount specified by the Division

withinthirty (30) days ofbeingnotifiedby the Divisionofthe additionalamount.

30. If there are insufficient funds collected to provide full restitution to each eligible

consumer, restitution shall be distributedto consumers on a pro ratabasis.

31. At the conclusion of any claims process conducted by the Division, any part ofthe

Restitution Amount paid by Koons Kia under this Assurance that has not been distributed to

consumers may, at the discretionofthe Attorney General, may be (a) held in trust for consumers

by the State or (b) used in accordance with State law, for consumer education or other purposes

permitted by State law

COSTS

32. Koons Kia shall pay the Division Two Hundred Thousand Dollars ($200, 000),

whichthe Division shall use to pay for the costs ofthe claims procedure provided under this

Assurance. Koons Kia shall make the payment required under this paragraph as follows: Thirty
(30) days from the date of this Assurance, Koons Kia shall pay the Division One Hundred

Thousand Dollars ($100, 000). IfKoons Kia has fully complied with all provisions ofthe

Assurance, including making timely payments pursuant to its payment terms, and remains in

compliance for a period of one year, the Division shall waive the remaining One Hundred

Thousand Dollars ($100, 000) of the payment that Koons Kia is required to pay pursuant to this

paragraph. If, at any time prior to the one year anniversary ofthis Assurance, Koons Kia

breaches any ofthe terms ofthis Assurance, the remaining balance ofthe amount due hereunder

shall become due and owing.

RELEASE

33. In considerationfor KoonsKia's commitments as set forth in this Assurance, the

Division releases and discharges Koons Kia, and its officers, employees, and agents, from all

civil claims that the Division could have brought under the Consumer Protection Act, relating to

the conduct alleged in paragraphs 5 and 6 that occurred prior to Koon's Kia's signing this

Assurance.

NOTICES

34. Unless another person is designated by either party, any notices or documents

required to be sent to the Parties pursuant to this Assurance shall be sent to the following
addresses:

a. For the Attorney General:

Philip Ziperman
Deputy Chief
Consumer Protection Division
200 St. Paul Place, 16th Floor
Baltimore, MD 21202
zi erman oa .state. md.us
 (410)576-6417

and

Chief, Consumer Protection Division

200 St. Paul Place, 16th Floor
Baltimore, MD 21202
[email protected]

b. For Koons of Reisterstown Road, Inc.

Thomas M. Wood, IV
Neuberger, Quinn, Gielen, Rubin& Gibber, P.A.
One South Street, 27th Floor
Baltimore, Maryland21202
[email protected]
(410)332-8523

DISPUTES

35. The Chief of the Division, or his designee, shall resolve any disputes concerning

this Assurance and enter any supplemental orders needed to effectuate its purpose.

ENFORCEMENT

36. Koons Kia understands that this Assurance is enforceable by the Consumer

Protection Division pursuant to the Consumer Protection Act and that any violation of this

Assurance is a violation of the Consumer Protection Act.

37. Koons Kia agrees that any future violations of this Assurance, or the Consumer

Protection Act, shall constitute a second violation ofthe Consumer Protection Act for purposes of
§13-410ofthe Act.
AGREED AS TO FORM AND SUBSTANCE:

Consumer Protection Division Koons ofReisterstown Road, Inc.

Officeofthe Attorney General ofMaryland

By: By:

Wi PZ.
William D. G hn Ja^-s ^. 0 Co^^Jt <^^^c-
Chie S^(^"<1
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PhilipD. pe an
Assistant Attorney General

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