The Maryland Consumer Protection Division, led by Attorney General Anthony G. Brown, has reached a settlement with DARCARS of Bowie, Inc. (operating as DARCARS Honda), its parent company Mariam, Inc., and owners John Rahmangholi Darvish and Jamshyd Darvish over civil charges. The settlement mandates DARCARS to refund certain fees charged to consumers, including “sales commission” fees, undisclosed markups, and charges for add-on products that were not knowingly purchased by the consumers. The exact amount of refunds is currently unknown but could total several million dollars.
Under the settlement, finalized through a Final Order by Consent, DARCARS must also refund the difference between the advertised price and the sale price for vehicles purchased or leased from them between January 1, 2019, and May 10, 2022. The company is prohibited from charging any sales commission fees or similar fees in the future, and must ensure all vehicle prices advertised reflect the full delivered price, excluding only taxes, tags, and title fees. Prices must include any markups and equipment charges, and all advertised prices must be displayed prominently enough for consumers to see simultaneously.
Additionally, DARCARS must provide clear disclosure of any dealer processing charges and ensure that each vehicle for sale includes a price statement. No sales are to be finalized without providing the buyer with a contract detailing all charges that contribute to the sale price difference from the base price. They are also required to clearly disclose the cost of any add-on products before any consumer decision to purchase these products, which must also be documented in writing.
Consumers eligible for refunds will be contacted by a third-party claims administrator. DARCARS has also agreed to pay $3 million to the Attorney General’s Office. Consumers with questions can contact the Attorney General’s Consumer Protection Division at 410-576-6569.
