Two owners claim that General Motors benefits from target fees for new cars.
Jun 2, 2021 – A “Target Fee” lawsuit filed by GM alleges the automaker is selling and leasing new vehicles while benefiting from the target fees listed on window stickers.
According to the class action lawsuit, GM should not make a profit by delivering new vehicles to dealerships in California and New Jersey.
General Motors’ class action lawsuit against destination taxes includes California and New Jersey consumers who have paid destination taxes.
California plaintiff Robert Romoff bought a new 2021 Chevrolet Equinox with a target fee of $ 1,195, and New Jersey plaintiff Joe Siciliano bought a new 2019 Cadillac Escalade with a target fee of $ 995.
Both customers claim they did not know that General Motors was benefiting from the target fees.
The two plaintiffs allege that they were misled by GM’s alleged fraudulent practice of forcing consumers to pay expensive destination fees for the delivery of their new GM vehicles.
“[A] The target fee is generally understood in the automotive industry to reflect the manufacturer’s average cost to deliver one of its vehicles to a dealer. This target fee is billed to the dealer and passed on to the buyer or renter of this vehicle. Consumers similarly expect to cover an automaker’s cost of delivering the manufacturer’s vehicles if they pay the “target fee” as part of their new car lease or purchase. “- GM lawsuit against target fee
GM is adding the target fee to its Buick, Cadillac, Chevrolet, and GMC vehicles, and although the vehicles can have different delivery charges, the lawsuit claims the cost can be as high as $ 1,695.
Consumers cannot negotiate the target fees and must pay the amount GM wants to charge for buying or leasing new vehicles.
According to the class action lawsuit, GM includes a “substantial profit” in the target fee and “deceives customers into paying far more than the actual cost of vehicle delivery” for new vehicles.
Plaintiffs allege that the target fee has little to do with the actual cost of delivering a vehicle to a dealer, which allegedly allows the automaker to put “hidden surcharges” on the vehicles.
The two plaintiffs also allege that they overpaid for their vehicles because GM failed to disclose the target fee gain.
The same attorneys who filed General Motors’ lawsuit also filed a lawsuit against Chrysler versus Chrysler in May.
The GM class action lawsuit was filed in the U.S. District Court for the Southern District of California: Romoff et al., V. General Motors LLC.
The plaintiffs are represented by Kaliel Gold PLLC and Kopelowitz Ostrow Ferguson Weiselberg Gilbert.