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Local Car Dealership Fined, Banned from Selling Cars in Kansas After Airbag Scandal

Annie Abella by Annie Abella
December 11, 2024
in Finance
0
Local Car Dealership Fined, Banned from Selling Cars in Kansas After Airbag Scandal

WICHITA, Kan. (KSNW) — A local car dealership, Carnation LLC, has been ordered to cease operations and stop selling vehicles in Kansas after being found guilty of deceptive practices.

The Sedgwick County District Attorney’s Office announced that a default judgment of $394,197 was entered against the dealership and its owner, Kayode Ajibolade.

The judgment stems from violations of the Kansas Consumer Protection Act (KCPA), including deceptive acts and willful breaches of a prior consent agreement.

Ajibolade and Carnation LLC were accused of failing to disclose that a car had deployed airbags before selling it to a consumer. The customer later discovered an airbag simulator device, which had been used to disable the airbag warning light on the dashboard.

Investigations revealed that in the first quarter of 2023, the dealership sold 12 additional cars with faulty airbags without informing the buyers.

This violation followed a 2019 consent judgment in which Carnation LLC had admitted to similar issues with undisclosed blown airbags.

In April, the court found that the dealership had violated the terms of the 2019 consent agreement and the KCPA. The court ordered Carnation LLC to pay $2,000 in restitution for each car sold, which was later covered by the dealership’s bonding company.

Additionally, Carnation LLC was fined $390,000 in civil penalties, court costs, and investigation fees. The court also revoked the dealership’s license and issued a permanent ban on selling vehicles in Kansas.

Ajibolade was held personally liable for the remaining balance of the judgment, and his license to operate in Kansas was also revoked, permanently prohibiting him from selling cars in the state.

The Sedgwick County District Attorney’s Office advises consumers to check a vehicle’s history through services like Carfax and to search a car’s Vehicle Identification Number (VIN) online to uncover any potential damage or issues before making a purchase.

Source

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