Maryland Attorney General Anthony G. Brown revealed a significant settlement in a civil case against DARCARS of Bowie, Inc. (d/b/a DARCARS Honda), its parent company Mariam, Inc., and their owners, John Rahmangholi Darvish and Jamshyd Darvish. This settlement will provide full restitution to consumers who were charged unlawful fees or paid more than the advertised price when purchasing or leasing vehicles from DARCARS Honda.
The settlement addresses claims that DARCARS Honda engaged in deceptive business practices, including charging a “sales commission” fee, marking up vehicle prices beyond advertised amounts, and selling add-on products to customers without proper disclosure. The refunds owed to consumers could total several million dollars, although the precise amount is yet to be determined.
“Buying a car is one of the most significant financial decisions people make, and it should not come with hidden fees or misleading charges,” said Attorney General Brown. “This settlement holds DARCARS accountable for its deceptive practices and ensures that Maryland consumers are protected from unfair business practices.”
The terms of the settlement, formalized in a Final Order by Consent, require DARCARS Honda to provide refunds for the following:
- Sales Commission Fees: Consumers who were charged a so-called “sales commission” fee will receive refunds.
- Price Discrepancies: Customers who paid more than the advertised price of the vehicle between January 1, 2019, and May 10, 2022, are eligible for refunds for the difference.
- Add-on Products: Any consumer who unknowingly paid for add-on products will also receive refunds for those charges.
In addition to the financial restitution, DARCARS must cease charging any so-called sales commission fees or similar charges. The dealership is also prohibited from advertising vehicle prices that exclude essential fees, such as markups or equipment charges. All vehicle price advertisements must now reflect the full delivered price, excluding taxes, tags, and title fees.
DARCARS is also required to provide clear and conspicuous disclosures for any dealer processing charges and must ensure that all charges associated with a vehicle sale are clearly stated in the purchase contract. Furthermore, any add-on products sold to consumers must be disclosed transparently, and the consumer’s decision to purchase such products must be documented in writing.
As part of the settlement, DARCARS will pay $3 million to the Attorney General’s Office. This payment will help support ongoing consumer protection efforts in Maryland.
Consumers who are eligible for refunds will be contacted by a third-party claims administrator. If they have questions or need assistance, consumers can also reach out to the Attorney General’s Consumer Protection Division at 410-576-6569.
Honda of Bowie Responds to Settlement Agreement
In response to the settlement, a representative from Honda of Bowie stated:
“While Honda of Bowie has reached an agreement with the Attorney General’s office, we were fully prepared to demonstrate in court that our practices align with the law and industry standards. This resolution is a business decision aimed at avoiding the costs and distractions associated with litigation. Our commitment to providing exceptional value and service to our customers remains unwavering, as it has always been at the core of our mission.
Any Honda of Bowie customer with questions about this agreement is encouraged to contact us at 1-866-841-9300.”
Article updated 03/07/2025
