Critical Shifts:
-
Inability to Fund Full Restitution: The $100,000 payout reflects the financial limits of the business rather than the full scope of consumer harm, as financial records proved the dealership lacked the assets necessary to provide complete refunds to affected buyers.
-
Prioritization of Operational Reform Over Monetary Recovery: Because full financial restitution was unachievable due to limited solvency, the state focused on securing permanent operational mandates—banning fake vehicle certifications, prohibiting unauthorized service contract add-ons, enforcing warranty compliance, ensuring clear Buyers Guide disclosures, and stopping deceptive marketing directed at Spanish speakers.
_____________________________________________
Minnesota Attorney General Keith Ellison announced that Midwest Car Search and its owner Scott Spiczka have agreed to reform their business practices and pay $100,000 to resolve allegations that they violated Minnesota’s Used Car Law and other consumer-protection laws. This settlement resolves Attorney General Ellison’s April 23, 2024, lawsuit.
“Minnesotans deserve honest information when buying a car, which for many people is the most expensive purchase they will ever make,” Attorney General Ellison said. “This settlement protects consumers and prevents Midwest Car Search from engaging in deceptive practices and exploiting Spanish speakers.”
The lawsuit alleged that Midwest Car Search: (1) misrepresented that its used cars are certified when they are not; (2) illegally added expensive vehicle service contracts to consumers’ purchases; (3) refused to provide warranties that it is required to provide by law; (4) failed to provide easy-to-understand “Buyer’s Guide” disclosures as required by law; and (5) conducted business under an unregistered trade name that heavily targeted and exploited Spanish speakers.
After filing the lawsuit, Attorney General Ellison obtained a court order requiring Midwest Car Search and Mr. Spiczka to cease these five forms of deceptive conduct. The settlement makes permanent and builds upon many of those protections.
As noted in today’s settlement, Midwest Car Search and Scott Spiczka provided financial information showing they did not have assets to provide full refunds to their customers. The $100,000 payment represents the maximum amount they can pay and is an addition to the robust reforms Attorney General Ellison obtained through the settlement.
