Wisconsin car dealer accused of discriminating against Native Americans


A northern Wisconsin car dealership has agreed to pay $1.1 million in refunds to Native American customers it allegedly scammed, according to a statement this week by the Wisconsin Department of Justice.

The current and former owners of Rhinelander Auto Group in Rhinelander and its general manager, Daniel Towne, agreed to the court-ordered settlement after an investigation by the DOJ and Federal Trade Commission agents showed multiple improprieties.

“Working closely with the State of Wisconsin, we are holding these dealerships accountable for discriminating against American Indian customers and sneaking junk fees onto consumers’ bills,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in a statement. “A vehicle is one of the most expensive purchases families make, and we are fully committed to ensuring that all consumers navigating the car-buying process can do so without facing unlawful discrimination or paying for products and services they do not want.”

Rhinelander is located about 25 miles from Forest County Potawatomi Community tribal lands and is in the region of the Lac du Flambeau and Mole Lake Ojibwe reservations.

In a lawsuit against the car dealership, the FTC and DOJ state their investigation shows the dealer charged an average of $1,362 more for add-ons in credit transactions for Native Americans than non-Latino white customers since 2016.

For example, one customer was told she was required to purchase Guaranteed Asset Protection for more than $1,000, even though she didn’t want to and it’s not required.

When the dealership changed owners in 2019, the practice continued, according to the lawsuit, and the unlawful junk fees even increased a little on average.

In addition, Native Americans were charged $401 or more in additional markup costs compared to non-Latino white customers, according to the lawsuit.

The proposed settlement also requires the dealership to stop deceiving customers about whether add-ons are required for a purchase.

Frank Vaisvilas is a former Report for America corps member who covers Native American issues in Wisconsin based at the Milwaukee Journal Sentinel. Contact him at [email protected] or 815-260-2262. Follow him on Twitter at @vaisvilas_frank.


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