'Fraud Cited in SMG $15 Million Lawsuit Against Consumer Guide'

LOS ANGELES, Jan. 15, 2004 -- Last week, Smart Marketing Group (SMG), a leading automobile dealer marketing company headquartered in Orange, CA filed a $15 million lawsuit in U.S. District Court in Cook County, Illinois alleging that Consumer Guide committed fraud and breached three contracts for its dealer programs.

Consumer Guide and its parent company, Publications International, are based in Lincolnwood, IL. Consumer Guide rates vehicles in its magazine and on its Web site. Consumer Guide recently purchased the assets of Info4Cars, of Asheville, NC.

"Consumer Guide misled us and asked us to mislead dealers," said William J. Magarity, President of SMG. "Consumer Guide's false promises caused us to misrepresent Internet programs to thousands of dealers. It appears that Consumer Guide never intended to fulfill their obligations."

According to the lawsuit, Consumer Guide knowingly schemed to defraud SMG and dealers through a series of false promises and concealed truths. As well, Consumer Guide breached several agreements with SMG and left hundreds of dealer contracts unfulfilled.

"We have been defrauded by Consumer Guide, and we've been contacted by dozens of dealers who feel the same way," said Magarity. "We intend to stand up for our rights and those of the dealers with whom we have done business for years."