Dashub Class Action Says Auto Auction Falsely Inflates Winning Bids

A class action lawsuit says Dashub, a dealership that purchases cars at auctions for consumers, falsely inflates the winning bid price of vehicles bought at auction, and keeps the difference between the real price and the price the company reports to consumers.

Plaintiff Yacine Ounis says that on April 17, 2018, he used Dashub’s website to make a deposit of $1,300 to begin the process of using the company to bid on a vehicle.

He says that he entered his maximum bid amount of $10,830 for a 2012 BMW 3 Series being sold at auction, as instructed by the site.

The Dashub class action lawsuit claims that on April 18 Ounis was notified that he had won the vehicle for $10,600. However, he says that the actual winning price was $10,100 and the company knowingly lied to him about the price of the vehicle, and pocketed the difference – $500.

Ounis says that his case is not the only instance in which Dashub lied to a customer about the winning bid price for a car.

He claims that the company makes a practice of lying to consumers by telling them that a vehicle sold for a higher price than it did, and pocketing the difference between the actual winning bid and the price the company reports to consumers.

The Dashub online auto auction says that he and other consumers were financially injured by Dashub’s conduct, and seeks damages on behalf of himself and all other similarly affected consumers.

To support this claim, Ounis notes that there are numerous other consumer complaints of Dashub allegedly falsely inflating the winning bid price to consumers.

One customer allegedly reported online that Dashub charged him $25,000 for a vehicle, when the vehicle sold only for $24,000 at auction.

The Dashub false pricing class action lawsuit says that Dashub’s practice of inflating the price reported to consumers of cars purchased at auction is in direct contradiction with the fees and pricing structure advertised by Dashub.

Allegedly, the company’s website advertises with the following statement: “As a licensed dealership, Dashub bids on your behalf, giving you the opportunity to get your new car at the same prices that dealerships pay, usually for pennies on the dollar!”

According to the Dashub price inflation class action lawsuit, the website specifically tells consumers that they will be charged a price for the purchased car that is equal to the winning bid for the car.

The Dashub class action lawsuit claims the company tells consumers that they will also be charged “(1) an auction fee, (2) Dashub’s transaction fee, (3) Dashub’s document fee, and (4) shipping cost.”

Allegedly, the price inflation that Ounis says occurs is not one of the aforementioned fees and occurs separately.

The plaintiff claims that he and other customers receive an itemized receipt that lists the price of the car (also known as the winning bid) and the four fees, but that the price of the car sold to consumers has been inflated above the winning bid price, separate from additional delineated fees.

Ounis is represented by Daniel A. Schlanger, Evan S. Rothfarb and Brian K. Herrington of Schlanger Law Group LLP.

The Dashub Winning Bid Price Inflation Class Action Lawsuit is Yacine Ounis v. Dashub LLC, Case No. 2:18-cv-05064-JS-AKT, in the U.S. District Court for the Eastern District of New York.