BAR Calls for Shut-Down of All 18 Econo Lube N' Tune Company-Owned Stores
14 July 1998
BAR Calls for Shut-Down of All 18 Econo Lube N' Tune Company-Owned Stores
Fraud, False & Misleading Statements, Oversell Alleged
SACRAMENTO, Calif., July 13 -- Ron Joseph, Acting Director of
the Department of Consumer Affairs (DCA) announced today that the Department's
Bureau of Automotive Repair (BAR) is seeking revocation of probation and
invalidation of the auto repair registrations -- in essence, the permanent
shutdown -- of all 18 company-owned Econo Lube N' Tune facilities scattered
throughout California.
In the accusation served today on Econo Lube N' Tune president Robert R.
Overdevest, BAR is charging the corporate stores with fraud, making false and
misleading statements, and pressuring customers to purchase unnecessary parts
and service. Today's filing marks the culmination of BAR's investigation into
the company's practices.
"This case serves notice to unscrupulous auto repair dealers in
California: if you are using scare tactics or fraud to coerce your customers
to purchase unnecessary repairs, BAR will take aggressive action against you,"
Joseph said.
In January 1996, BAR took action against the company for false and
misleading statements and fraudulently selling unnecessary parts and services
to consumers -- a practice BAR calls "oversell." As a result of that case,
all of the corporate facilities' registrations were placed on three years'
probation. Under the stipulated agreement in the case, the company was
specifically prohibited from selling unnecessary parts and services.
In March 1997, prompted by a significant number of consumer complaints,
BAR launched a subsequent investigation of one of the company stores in
Fresno. Three undercover runs confirmed allegations that shop employees made
false and misleading statements designed to sell unnecessary parts and
services. The investigation also confirmed that the company used misleading
advertising to entice consumers into more costly -- and unnecessary -- repair
purchases. In April, BAR filed an accusation against the Fresno shop, seeking
revocation of probation and revocation of the shop's auto repair registration.
To monitor the company's compliance after the accusation was served, BAR
launched a statewide investigation on the company-owned stores throughout
California. The statewide investigation confirmed continued violations,
including fraud, oversell, false and misleading statements, unfair business
practices, and false and misleading advertising.
"The Department of Consumer Affairs and BAR have zero tolerance for repair
dealers who attempt to increase their profit margin at the expense of the
public trust. BAR has a proven track record of aggressive consumer advocacy,
and both BAR and DCA will continue to stand up for California consumers to
prevent these practices," Joseph said.
To date, BAR has conducted 33 undercover runs in its investigation of
Econo Lube N' Tune.
There are a total of 128 Econo Lube N' Tune facilities operating in
California. Of that total, 18 are owned and operated by the corporation.
This action is being taken against the 18 company stores only, and does not
affect the 110 independently owned Econo Lube N' Tune franchises throughout
the state.
This case is just one of the hundreds of cases BAR submits annually to
local District Attorneys and the Attorney General as a result of its
aggressive consumer protection and enforcement activities. During the 1996/97
fiscal year, DCA/BAR mediated 30,619 auto repair-related complaints. This
effort returned more than $5.3 million to California consumers in the form of
refunds, rework, or adjustments. During this same period, DCA/BAR conducted
more than 1,400 formal investigations, most of which involved allegations of
fraud. These investigations resulted in the filing of 426 formal accusations,
208 criminal actions, 18 civil actions, and 513 citations.
This is not the first time DCA/BAR has taken action against a major
national repair chain for oversell practices. In September 1992, Sears
Roebuck and Company agreed to pay $8 million in an out-of-court settlement
with the Department of Consumer Affairs as a result of a far-reaching DCA/BAR
investigation. In that case, BAR found that company sales quotas and
incentives led to the sale of unnecessary auto repairs and service to
California consumers. Sears substantially changed its sales practices as a
result of BAR's enforcement action.
To check the status of an auto repair dealer's license, or to file a
complaint, call BAR's Consumer Hotline at 800-952-5210. Or visit BAR's
website at http://www.dca.ca.gov for tips on choosing a shop or for checking an auto
repair dealer's license status and disciplinary history.
ECONO LUBE N TUNE CORPORATE STORES
**Econo Lube N' Tune #66
530 E. Main
Barstow, CA ARD# AG195542
*Econo Lube N' Tune #219
1957 E. 20th Street
Chico, CA ARD# AB198226
*Econo Lube N' Tune #110
2121 Villa Avenue
Clovis, CA ARD# AL197268
**Econo Lube N' Tune #73
1288 Fesler
El Cajon, CA ARD# AD199177
*Econo Lube N' Tune #79
9433 Sierra Avenue
Fontana, CA ARD# AC198766
***Econo Lube N' Tune #70
3944 N. Blackstone
Fresno, CA ARD# AF195264
*Econo Lube N' Tune #106
4815 E. Kings Canyon
Fresno, CA ARD# AG195539
+*Econo Lube N' Tune #92
4127 W. Shaw Avenue
Fresno, CA ARD# AL191883
***Econo Lube N' Tune #92
4127 W. Shaw Avenue
Fresno, CA ARD# AJ196382
(Changed Ownership)
*Econo Lube N' Tune #204
16817 Main Street
Hesperia, CA ARD# AG195536
***Econo Lube N' Tune #122
772 13th Street
Imperial Beach, CA ARD# AC198835
**Econo Lube N' Tune #182
7633 El Cajon Blvd.
La Mesa, CA ARD# AC198506
**Econo Lube N' Tune #20
15312 Hawthorne Blvd.
Lawndale, CA ARD# AD193960
**Econo Lube N' Tune #167
1055 Dana Center Drive
Redding, CA ARD# AA198024
*Econo Lube N' Tune #71
6101 Folsom Blvd.
Sacramento, CA ARD# AB198225
*Econo Lube N' Tune #196
4120 Clairemont Mesa Blvd.
San Diego, CA ARD# AK196627
**Econo Lube N' Tune #201
1759 Euclid
San Diego, CA ARD# AD199178
*Econo Lube N' Tune #69
14602 Washington Avenue
San Leandro, CA ARD# AD199109
**Econo Lube N' Tune #222
920 Petaluma Hill Road
Santa Rosa, CA ARD# AF200062
+*Denotes location where Petition to Revoke Probation was served on
4-11-98
*Denotes locations where undercover runs were performed and are contained
in the accusation dated 7-8-98 and served on 7-13-98
**Denotes locations where investigations have been conducted and a
supplemental accusation will be drafted
***Denotes locations that will be included in the accusation, however no
investigation was conducted