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New Jersey Accuses Sears
Of Auto Repair Fraud

October 11, 2002
New Jersey's attorney general has filed suit against Sears, accusing it of overcharging hundreds of customers at its car-repair centers around the state.

The lawsuit claims that Sears routinely charged for performing "four-wheel alignments," even though only the front wheels can be aligned on many vehicles. The suit also charges that mechanics told customers they would conduct a "free" vehicle inspection but then went on to charge for unauthorized repairs supposedly discovered during the inspections.

According to the lawsuit, Sears offers only a $59.99 four-wheel alignment and does not offer any discount on vehicles with a "live," or solid, rear axle. Rear wheels are not adjustable on such vehicles, which include most pickup trucks, sport utility vehicles and other light trucks and full-sized cars.

The lawsuit also charges that Sears mechanics routinely did repairs without providing a written estimate and often failed to tighten lug nuts or properly grind brake rotors.

Attorney General David Samson said the state will seek refunds for customers and penalties of up to $10,000 for each violation. The lawsuit lists 362 alleged violations.

A Sears spokesman in Chicago said the company knew nothing about the allegations until being served with a copy of the lawsuit and denied the alleged actions were part of a companywide policy. But both Samson and Gov. James R. McGreevey said the actions were widespread and pervasive.

"This was repeated over and over again. There was a persistent and pervasive pattern of fraud and deception," Samson said. He said there were at least 350 instances of the alleged overcharges for wheel alignments at 19 separate Sears stores in New Jersey.

McGreevey said Sears was responsible for "a moral erosion of business practices."

None of this is new for Sears. Ten years ago, it was accused of defrauding millions of auto repair customers. It finally settled that suit by offering $50 coupons to nearly one million auto-repair customers.

In 1992, Sears paid a $200,000 penalty in New Jersey after the state conducted an undercover investigation into alternator repairs. In that investigation, the state charged that Sears mechanics routinely disconnected a wire leading to the alternator and then recommended unnecessary alternator repairs and replacements costing up to $400.

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