Fiat Chrysler ‘Phantom Freight’ Charges Class Action Lawsuit Overview:
- Who: Christopher Lindsey and BCR Carpentry LLC filed a class action lawsuit against FCA US, LLC and Stellantis N.V.
- Why: Lindsey and BCR Carpentry claim Fiat Chrysler and its successor Stellantis N.V. have been charging customers “phantom freight” delivery charges on new vehicle sales.
- Where: The class action lawsuit was filed in New Jersey federal court.
Fiat Chrysler has recently begun reinstating “phantom freight” charges on new vehicle sales, a new class action lawsuit alleges.
Plaintiffs Christopher Lindsey and BCR Carpentry claim FCA, as well as its successor company Stellantis N.V., have returned to the scrutinized and once-abandoned practice of adding “destination charges” to vehicles sold at a dealership.
Lindsey and BCR Carpentry argue these charges are used for “artificially inflating the purported cost of transporting vehicles to dealerships for sale to consumers.”
“Auto manufacturers used that inflated cost to unfairly derive additional revenues that they could not have generated by simply raising the vehicles’ sales price,” the Fiat Chrysler class action states.
To be in compliance with the Automobile Information Disclosure Act, companies are required to place a sticker on a vehicle’s window that lists, among other things, any destination charge before selling vehicles, according to the Fiat Chrysler class action.
Fiat Chrysler Class Action Alleges Company Reinstated Destination Charges
Lindsey and BCR Carpentry claim FCA, which previously decided to do away with “phantom freight” charges in the face of congressional scrutiny, has now been “emboldened” to return to the practice.
“Seizing on its ability to manipulate the market in these ways, since at least the 2018 model year, FCA has reengaged in the systematic practice of charging inflated destination charges for class vehicles,” the FCA class action states.
Lindsey and BCR Carpentry argue FCA charges “hundreds of dollars more” per vehicle it sells than its competitors by listing destination charges that are “materially higher than the delivery cost.”
“These newly inflated destination charges reflect a return to the price packing and phantom freight charging that were endemic in the early 20th century,” the Fiat Chrysler class action states.
Lindsey and BCR Carpentry claim FCA is guilty of unjust enrichment and in violation of the New Jersey Consumer Fraud Act.
Lindsey and BCR Carpentry want to represent a New Jersey class of consumers who purchased a model year 2018 or later Chrysler, Jeep, Dodge, Ram, Fiat or Maserati vehicle from FCA in the state.
Plaintiffs are demanding a jury trial and requesting declaratory and injunctive relief along with statutory and treble damages for themselves and all class members.
In January, a federal judge declined to toss a class action lawsuit filed accusing FCA of selling vehicles with faulty gear shifts.
Have you paid a ‘phantom freight’ charge on a vehicle you purchased from FCA? Let us know in the comments!
The plaintiffs are represented by by Joseph J. DePalma and Bruce D. Greenberg of Lite DePalma Greenberg & Afanador LLC; William H. Anderson and Rebecca P. Chang of Handley Farah & Anderson PLLC; Rosemary M. Rivas, David Stein and Kyla J. Gibboney of Gibbs Law Group LLP; and Jon M. Herskowitz of Baron & Herskowitz.
The Fiat Chrysler ‘Phantom Freight’ Charges Class Action Lawsuit is Lindsey, et al. v. FCA US, LLC, et al., Case No. 2:22-cv-02637, in the U.S. District Court for the District of New Jersey.
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