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Supreme Court Forbids Car Dealerships from Hiding Car Prices Behind Discounts and Additional Services

A buyer received a benefit when purchasing a car, but also signed up for a service worth 200,000 rubles

The Supreme Court of the Russian Federation has put an end to the dispute over car discounts that car dealerships offer only when additional services are purchased. The court concluded that such a scheme could mislead buyers, as the real cost of the car turns out to be higher than the stated price.

The reason for the proceedings was the story of a resident of Krasnodar Krai who bought a used domestic car at a car dealership. When finalizing the deal, she was offered to sign a contract for technical assistance worth 200,000 rubles. In return, the buyer received a discount on the car.

Later, the car owner decided to refuse the additional service, as she had not actually used it, and demanded a refund of the amount paid. However, the car dealership refused to do so, explaining that the car discount was provided only on the condition of purchasing the service.

After the refusal, the woman went to court. The first instance sided with the seller, stating that the contract was concluded voluntarily. However, subsequent instances partially supported the buyer's claims and ordered the return of money for the service, as well as compensation for moral damages.

The Supreme Court of the Russian Federation gave the final assessment of the situation. The Judicial Collegium for Civil Cases indicated that selling a car at a reduced price with mandatory additional services effectively distorts the buyer's perception of the product's value.

According to the court, such a scheme creates a feeling of a more advantageous purchase for the consumer, although the final price of the car increases due to imposed services. At the same time, profits from such contracts can be distributed between the car dealership and related organizations.

The Supreme Court overturned previous decisions and sent the case for a new review. Now, the lower court will have to re-evaluate the circumstances of the transaction, taking into account the position of the highest judicial instance.

The Supreme Court's decision may affect car sales practices, as many dealers use discounts associated with the registration of additional programs, service packages, and other paid services.

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