[Souce: Automotive News] The FTC and the Wisconsin Department of Justice have reached a combined settlement of $1.1 million against Rhinelander Auto Center and affiliated parties for allegedly charging illegal junk fees and discriminating against American Indian customers. The FTC and Wisconsin DOJ had accused Rhinelander of charging its customers upward of thousands of dollars for add-ons without their consent, according to a combined statement released Wednesday. Rhinelander also was accused of unfairly marking up the transactions of American Indian customers. Though it agreed to the settlement, Rhinelander denied wrongdoing.

The current owners of Rhinelander, as well as general manager Daniel Towne, have agreed to cease the unfair practices and pay $1 million to refund customers. In a separate settlement, the former owners, Rhinelander Auto Center Inc. and Rhinelander Motor Co., agreed to permanently wind down business and pay $100,000 to refund affected consumers.

The complaint made by the FTC and Wisconsin cited a survey of Rhinelander customers that found half of customers were charged for add-ons "without authorization or through deception," the combined statement said. Additionally, the FTC and state of Wisconsin accused Rhinelander of marking up the interest rates of American Indian customers, which caused them to pay $401 more on average, the combined statement said. The agencies also accused the store of charging American Indian customers for unwanted add-ons at an above-average rate. The alleged practices cost American Indian customers $1,374 more on average for add-ons in credit transactions since 2019, the combined statement added.