DCWP Takes Action Against Bronx Used Auto Dealer for Driving Up Vehicle Costs With Bait-and-Switch Pricing

May 14, 2026

Order Against Honda of the Bronx Will Require All-In Pricing, Refunds for Harmed Consumers and End to Cancellation Traps; Commissioner Levine Vows to Continue Crackdown on Illegal Overcharging

NEW YORK, NY – Today, Commissioner Samuel A.A. Levine and the New York City Department of Consumer and Worker Protection (DCWP) announced an enforcement action against a Bronx-based used auto dealership for overcharging New York consumers, failing to provide cancellation options and committing other violations of New York City’s consumer protection laws. DCWP’s investigation of 2541 E Tremont Ave Auto, LLC—conducting business as “Honda of the Bronx”—found widespread deceptive business practices. The dealership admitted wrongdoing and entered an agreement to pay $129,999.

“Buying a car shouldn't be a gamble. But too many dealerships are baiting working people with one price, then charging another, hiding the true cost of loans and locking consumers into contracts designed to keep them trapped in debt. That is illegal, it is exploitative and it is making life even harder for New Yorkers already struggling to get by,” said Mayor Zohran Mamdani. “Our administration will use every tool we have to crack down on predatory practices, hold bad actors accountable and ensure that every New Yorker gets a fair deal.”

"Hidden fees and deceptive pricing chip away at the financial security of working families across this city. When someone gets ripped off buying a used car, that's real money out of their pocket—money they can't afford to lose. This administration was elected to make sure New Yorkers get a fair shake when they spend their hard-earned money, and that's exactly what we're doing,” said Deputy Mayor for Economic Justice Julie Su.

“Once a cornerstone of personal freedom and mobility, car ownership is increasingly slipping out of reach for many Americans. Used auto dealerships can offer more affordable options, but too often they’re rife with hidden fees, bait-and-switch tactics and predatory financing that drive costs even higher,” said DCWP Commissioner Samuel A.A. Levine. “That’s exactly the kind of deception this administration is putting in the rearview mirror.”

In total, 2541 E Tremont Ave Auto agreed to pay $61,499 in civil penalties and $68,500 in consumer restitution, and admitted to more than 350 violations of New York City’s consumer protection laws. Over a multi-month investigation, DCWP identified a pattern of systemic noncompliance with New Yorkers’ consumer rights:

Bait-and-switch pricing: Cars were advertised at one price but sold at a higher one, affecting dozens of customers.
Operating without a license: The business sold cars even when it was not properly licensed by the City to do so.
Missing key paperwork: Many buyers were not given required documents explaining their rights.
Hidden financing details: Some customers were kept in the dark about loan terms and total costs.
Cancellation traps: The dealership withheld cancellation options and forms for consumers.

DCWP Enforcement Actions Against Deceptive Auto Sales

Buying a car is one of the biggest financial decisions many families make, and the dearth of affordable options in the current U.S. marketplace makes it even more challenging. In recent years, DCWP has taken targeted steps to clamp down on predatory practices in the used-car industry, securing millions of dollars in restitution for harmed consumers while tightening oversight of dealerships. In the past five years, DCWP has secured $1.97 million for consumers in restitution, scored $6.53 million in civil penalties, investigated 106 used car dealerships, and helped over 675 impacted consumers.

DCWP is currently litigating a trial against Victory Mitsubishi/Spartan Auto, a Bronx-based used auto dealer with a long track record of scamming New Yorkers, after DCWP conducted a multiyear investigation and filed this large action at the Office of Administrative Trials and Hearings in 2024. DCWP also recently secured a $1.5 million settlement against a Queens-based cohort of dealerships that used false advertising, hidden fees and deceptive financing tactics to exploit buyers.

Under Mayor Zohran Mamdani, DCWP has ramped up efforts to crack down on deceptive business practices. The department has strengthened enforcement in industries where consumers are most vulnerable, rooted out junk fees and excessive charges driving up a cost-of-living crisis and ensured that markets—from housing to retail to auto sales—work fairly for everyday New Yorkers. This enforcement action reflects the broader economic justice vision of this administration: building a city where working people are protected, empowered and able to afford the essentials they need to take care of their families.

The NYC Department of Consumer and Worker Protection (DCWP) is the nation’s leading municipal enforcement agency charged with delivering economic justice. DCWP leverages its authority to bring New Yorkers real economic relief and protect them from predatory, deceptive, and unfair practices that violate their rights as consumers and workers. This includes pioneering cutting-edge protections, such as the City’s Consumer Protection Law, Protected Time Off Law, Fair Workweek Law, and Delivery Worker Laws, including the Minimum Pay Rate for delivery workers. Through licensing more than 45,000 businesses in over 45 industries, DCWP ensures fair competition and a level playing field for responsible small businesses that are integral to New York City’s vibrant communities. DCWP also provides essential services such as free tax preparation and financial counseling to ensure New Yorkers keep more of what they earn and can plan for their futures. DCWP is committed to making sure New York City is a fairer, more affordable place to live. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp, sign up for its newsletter, or follow on its social media sites, X, Facebook, Instagram, and YouTube.

Media Contact:
Milo Fink Gringlas
Department of Consumer and Worker Protection
(646) 772-0331
press@dcwp.nyc.gov