Midas Sued for Millions in Cali. Who's Next?

98Expedition10 · #1 07-01-2009, 05:08 PM

California filed a $222 million lawsuit against the owner of 22 Midas Muffler shops after uncover agents discovered a "massive" scheme in which consumers were charged for unneeded repairs, California Attorney General Edmund G. Brown Jr. announced.

"These Midas shops were running a massive bait-and-switch scam, in which customers were lured in with the promise of cheap brake specials and then charged hundreds more for unnecessary repairs," Brown said in a statement. "This investigation revealed a shady and deceptive operation that violated the trust of its customers."
During the four-year investigation, agents found shops owned by Maurice Irving Glad regularly advertised sub-$100 brake specials to lure customers into paying for hundreds of dollars of work that was not needed or, sometimes, not even done.

The lawsuit, filed was filed by Brown along with Alameda County District Attorney Tom Orloff and Fresno County District Attorney Elizabeth A. Egan.

This isn't Glad's first brush with the law. He ran afoul of the state in the 1980s and was under a 1989 injunction prohibiting the practices being alleged.

Shops charged agents an average of almost $300 in unnecessary brake rotor resurfacings, brake drum repairs, brake adjustments, brake cleaning services and other services, the Attorney General's Office said.

UPDATE: Midas spokesman Bob Troyer said the company had no specific comment on the lawsuit.

However, he noted that Glad has been franchisee for 32 years and has been committed to training his workforce in technical and customer service areas. Since learning of the California investigation, the company has been working with those shops.

And, Troyer added, "We do not control the day-to-day in-shop operations of franchised shops."

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4.6 Punisher · #2 07-01-2009, 05:13 PM

I can believe it. I'm sure it happens to several of shops and the victims are usually people who know nothing about cars, but since they don't know any better it goes unreported.

efuehrin · #3 07-01-2009, 06:14 PM

I can't believe what people will pay to have their brakes fixed.

I do it in my garage for usually under $75.

If I need the rotors turned add $25, or replaced you may have to add $100 or so but that's about it.

My buddy's girlfriend got charged $800 something once just to replace the pads and turn the rotors!

Crooks!!!!

88racing · #4 07-01-2009, 06:37 PM

Finally someone took some action. Maybe some of the other service shop franchises will wise up and quit pulling that crap also.

Stealth · #5 07-01-2009, 07:24 PM

It's not breaking the law until you're caught, right?

Those crooks will pay. What comes around goes around.

jdruzik · #6 07-01-2009, 08:41 PM

If it sounds to good to be true... Buyer beware. With the cost of labor and parts, anyone thinking they will get a brake job for less than $100 is dreaming...

mhockey9090 · #7 07-01-2009, 09:43 PM

its soo easy too scam people on this too. I had just brakes quote me 1100 on all new rotors and pads and misc crap and i was like heck no. Another funny thing about that too is that the rotors have never been resurfaced or turned and told me i had to get new ones and these were screwed. I just had them turned ( almost 18k later) and are perfectly fine. I just had to replace my pads...But learn how to do it yourself and cost way less and you actually learn more about your vehicles and for future projects or if a friend needs help. From what i heard brakes is one of the easier things to replace on vehicles.