Lithia Motors, Inc. Rotten Score Breakdown

In 2016, Lithia Motors Inc. settled Federal Trade Commission allegations concerning advertising for used vehicles. The FTC alleged that Lithia promoted the rigor of its used-car inspection programs while failing to adequately disclose that some vehicles offered for sale were subject to unrepaired safety recalls. The agency said safety is a major consideration for car buyers and that dealers touting comprehensive inspections need to clearly disclose unresolved safety recalls. The FTC's final consent order imposed requirements governing Lithia's future representations about vehicle inspections and safety recalls. Sources: Federal Trade Commission https://www.ftc.gov/news-events/news/press-releases/2016/01/gm-jim-koons-management-lithia-motors-inc-settle-ftc-actions-charging-their-used-car-inspection Federal Trade Commission case page https://www.ftc.gov/legal-library/browse/cases-proceedings/152-3102-lithia-motors-inc-matter

In March 2006, a federal court approved a $562,500 settlement of an EEOC race-discrimination lawsuit against Lithia Motors, Inc. and Lithia Cherry Creek Dodge. The EEOC case involved three African American former employees who were subjected to alleged racial harassment and retaliation. The agency said one employee complained after a general manager made explicitly racist statements and that the employees were targeted because of race. The settlement resolved the federal discrimination case and provided monetary relief to the affected former employees. Source: U.S. Equal Employment Opportunity Commission https://www.eeoc.gov/newsroom/lithia-car-dealership-pay-562500-race-bias-against-black-salesmen-targeted-manager