The state attorney general has sued two related car dealerships for deceptive pricing practices.

Attorney General Peter F. Neronha said that Grieco Honda added a $5,000 "addendum fee" to the price of their vehicles.

Grieco Toyota, of East Providence, advertised prices that are not allowed in car ads.

Neronha wants to have customers reimbursed for the amount they overpaid, as well as fining the dealers up to $10,000 for each violation of the state's Deceptive Trade Practices Act, fines that could total more than $1 million.

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Grieco Automotive Group CEO denies accusations

George Smith, chief operating officer of Grieco automotive group, denied advertising Hondas at false and misleading prices and blamed the use of a Florida advertising company.

Smith said that the prices listed on the Honda dealership's website were the manufacturer's suggested retail price and not the price for which the car was offered. He said the prices were only for information purposes.

Smith said dealers usually sell cars for less than the suggested price. Some cars in the current market go for more than the suggested price because of the short supply and high demand.

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Smith said his lawyer, former Attorney General Jeff Pine, is working with Neronha's office to make sure the company complies with the law.

Smith said that Honda requires dealers to list the suggested retail price in ads and bars them from listing the discount or markup from that price.

Michael Grieco Jr. started a collision-repair service in the 1970s. Michael Grieco Jr. heads the company.

What the cases allege

According to the cases, a customer went to Grieco Honda in December and was told that the car would cost $5,000 more than the sticker price.

The suit states that investigators from the attorney general's office visited the dealership three times in January and March and were told that vehicles would cost $5,000 more than the advertised price.

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More than 100 cars were listed in ads for Grieco Toyota as being sold at wholesale prices.

The Division of Motor Vehicles, which regulates car dealers, has rules that prohibit the use of the word "wholesale" in retail motor vehicle advertising.

Wholesale prices.

The office of Neronha is prepared to make sure that car dealers follow the rules.

The Providence Journal had an article about car dealers accused of deceptive pricing.

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