Rotten Company

Lithia Motors, Inc.

Approved Evidence

Added to Rotten Company: 8/20/2026
Conduct/Event period: January 28, 2016–December 16, 2016
Ongoing: No
Resolution status: Resolved
Resolution date: December 16, 2016
misconduct

Lithia Motors Settled FTC Charges Over Used Cars With Unrepaired Safety Recalls

Summary

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

Evidence Weight
100.00
Severity: high
Recency Weight: 99.99933646096842
File Weight: 1
Added to Rotten Company: 8/20/2026
Conduct/Event period: 2003–March 16, 2006
Ongoing: No
Resolution status: Resolved
Resolution date: March 16, 2006
misconduct

Lithia Motors Paid $562,500 to Settle EEOC Race Harassment and Retaliation Case

Summary

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

Evidence Weight
100.00
Severity: high
Recency Weight: 99.99971177700405
File Weight: 1