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DCA/BAR Revokes Registration for Company-Owned Econo Lube N' Tunes

30 July 1999

DCA/BAR Revokes Registration for Company-Owned Econo Lube N' Tunes

    SACRAMENTO, Calif., July 29 -- The California Department of
Consumer Affairs/Bureau of Automotive Repair today announced a settlement
resulting in the revocation of automotive repair registrations for all
18 company-owned Econo Lube N' Tune facilities throughout California.
    "Unscrupulous automotive repair dealers should note that there is no
profit in coercing consumers -- because the cost is high.  We will revoke
their license to do business in California," said California Department of
Consumer Affairs Director Kathleen Hamilton.
    In a legal action served July 13, 1998, BAR charged all 18 Econo Lube N'
Tune corporate stores with fraud, making false and misleading statements, and
pressuring customers to purchase unnecessary parts and services, an illegal
practice BAR calls "oversell." Econo Lube N' Tune stipulated to revocation of
all company owned registrations and to paying BAR's investigation charges of
approximately a quarter million dollars.
    The settlement was concluded in conjunction with a stipulated judgement
filed in Fresno County by the District Attorney. Their filing was based upon
the Bureau's investigation and cited unfair business practices.
    There are a total of 128 Econo Lube N' Tune facilities operating in
California. Of that total, 18 were owned and operated by the corporation. This
action is being taken against the company stores only, and does not include
the independently owned Econo Lube N' Tune franchises throughout the state.
    In January 1996, BAR filed charges against the company for oversell, and
the corporate facilities' registrations were placed on three years' probation.
Prompted by a significant number of consumer complaints, BAR launched a
subsequent investigation of a company store in Fresno, which resulted in the
filing of an accusation seeking to retract the probation and revoke the
license. BAR also monitored compliance of other company-owned facilities and
confirmed continued violations. Overall, BAR conducted 33 undercover runs in
its investigation. The legal action was spearheaded by Deputy Attorney General
Kent Harris, and Janice Lachman of the Licensing Section, Attorney General's
Office.
    This is not the first time BAR has taken action against a major repair
chain for oversell practices. On July 21, 1999, in the largest legal action
ever taken against brake repair fraud in San Diego, BAR filed charges against
all 17 company-owned California locations of Brake Depot, Inc.
    Consumers may check the status of an automotive repair dealer's license,
or file a complaint, by calling BAR's Consumer Hotline at 800-952-5210.
Consumers may also visit the Department's website at http://www.dca.ca.gov for tips
on choosing an automotive repair dealer or for a complaint form.
    The Department of Consumer Affairs is a leading consumer advocate in state
government. The Bureau of Automotive Repairs registers and regulates
approximately 32,000 California automotive repair facilities and licenses lamp
and brake inspection stations, smog inspection stations, and smog check
technicians.