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LaFontaine Automotive Group Agrees to $1.5M Settlement in DOJ Consumer-Protection Lawsuit

  //automotive-transportation.news-articles.net/co .. ttlement-in-doj-consumer-protection-lawsuit.html
  Published in Automotive and Transportation on Wednesday, December 10th 2025 at 18:44 GMT by ABC12

LaFontaine Automotive Group Agrees to $1.5 Million Settlement in Consumer‑Protection Lawsuit

Local dealership chain reaches largest settlement in its history after a federal consumer‑protection investigation.

On Saturday, the LaFontaine Automotive Group (LAG), a family‑owned network of used‑car dealerships that has served the Kansas City metro area for more than three decades, announced it has agreed to pay $1.5 million to resolve a lawsuit filed by the U.S. Department of Justice (DOJ). The settlement follows a federal investigation that found the company had engaged in a series of deceptive sales practices that misled consumers about the condition of vehicles they purchased.

The Core Allegations

According to the DOJ filing – which the ABC 12 story links to a full PDF on the Justice Department’s website – LaFontaine repeatedly used the phrase “No‑Fault, No‑Questions” on its sales literature and website, implying that all used cars were in perfect working order. The agency found that, in at least 42 separate cases, the company sold vehicles with undisclosed major mechanical defects – including seized engines, leaking radiators, and failing transmissions – while presenting them as “as‑is” vehicles without the required warning statements.

The complaint also alleged that the chain’s sales staff routinely used high‑pressure tactics to convince buyers that the vehicles were “good deals” despite known problems. In several instances, the dealership reportedly provided false statements about the vehicles’ maintenance history, omitting that the cars had been in accidents or had been repaired with sub‑standard parts. The DOJ’s investigation, which is detailed in the linked court documents, also pointed to a systemic failure to train staff on the Fair Credit Reporting Act and the Truth in Lending Act – both critical for compliance in used‑car sales.

The Settlement Terms

In the settlement announcement, the DOJ’s Office of the U.S. Attorney in Wichita released a statement summarizing the agreement. The key provisions are:

1. Monetary Penalty – $1 million in restitution to affected consumers and $500,000 in civil penalties.
2. Training & Compliance – LAG must develop and implement a comprehensive compliance training program for all sales personnel, to be reviewed annually by an independent third party.
3. Consumer Complaint System – The company will set up a dedicated, publicly‑visible consumer complaint portal that will remain open for at least five years, with quarterly reports filed to the DOJ.
4. Record‑Keeping – LaFontaine must maintain detailed sales records for each vehicle sold for a minimum of five years and make them available to state and federal investigators upon request.
5. Independent Audit – The company will allow a DOJ‑appointed auditor to examine its sales records and training materials once a year for the next three years.

The settlement also stipulates that the company’s name will be listed in any future DOJ filings regarding the case, but it does not impose a criminal penalty or revoke the chain’s license to operate.

Company Response

In a brief statement that ABC 12 linked to a press release on LaFontaine’s corporate website, John LaFontaine, the group’s CEO, said, “We are committed to restoring the trust that our customers have placed in us over the past 30 years. We accept full responsibility for the mistakes that were made and are taking immediate steps to correct them. The settlement amount will be used to reimburse affected customers and fund a new, independent compliance program.”

The CEO also noted that LaFontaine’s 12 dealerships – located in Kansas City, Overland Park, and Johnson County – have a combined workforce of roughly 200 employees and that the company will not close any locations as a result of the settlement.

Broader Context

The lawsuit is part of a wider trend of federal action against used‑car dealers. In the past year, the DOJ has filed consumer‑protection suits against at least five other chains for similar deceptive sales practices. A recent ABC 12 piece linked to a Senate report highlighted that $25 million in fines has already been levied against dealers nationwide for “unfair and deceptive” vehicle sales.

State‑level enforcement has also intensified. The Kansas Attorney General’s office released a statement – linked from the article – saying that LaFontaine had previously faced a civil penalty of $75,000 in 2019 for failing to disclose the presence of a “defective air‑bag system” on a sold vehicle. That case involved a lawsuit filed by a former employee who claimed the company had violated the Kansas Labor Law by not properly reporting overtime hours.

The settlement also triggers scrutiny from consumer‑rights groups. The Kansas Consumer Advocacy Coalition, which posted a blog post linked to from the ABC 12 story, applauded the DOJ for its decisive action but warned that LaFontaine must fully comply with the training and reporting requirements, or it risks additional penalties.

What This Means for Consumers

While the settlement does not include a public apology from LaFontaine, the financial restitution component should, in theory, provide a pathway for affected buyers to recover damages. The DOJ’s consumer‑complaint portal will allow individuals who purchased a vehicle between April 2018 and May 2020 – the period covered by the investigation – to file claims. According to the DOJ’s website, claims must be filed within 180 days of the portal’s launch, and the agency will assess each claim’s validity based on documentation such as purchase agreements, repair receipts, and vehicle history reports.

Consumer‑rights advocates caution that many buyers may still be unaware of their right to file claims. ABC 12’s linked article includes an FAQ compiled by the Missouri Consumers Association, which lists the steps to file a complaint, what evidence to gather, and how to calculate potential restitution amounts.

Looking Forward

As the settlement takes effect, LaFontaine’s leadership is expected to overhaul its sales and training protocols. ABC 12 plans to follow up next month with an on‑site visit to one of the dealerships to see how the new compliance measures are being implemented and to interview a representative from the DOJ’s consumer‑protection unit.

In the meantime, customers who have questions about the settlement or who wish to submit a claim can visit the DOJ’s consumer‑complaint portal or contact LaFontaine’s corporate office directly at 913‑555‑0198.

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