GM ‘Destination Charge’ Not Deceptive, Ninth Circuit Affirms

Jan. 30, 2023, 8:55 p.m

General Motors LLC Voz has upheld a proposed class-action lawsuit alleging that it misled car buyers by failing to disclose that the “destination fee” on the car sales included a profit.

Robert Romoff and Joe Siciliano alleged that the vehicle’s price stickers made customers believe that the destination cost—paid by dealers to the automaker—reflected the actual cost to GM of transporting a vehicle to a dealership, not transportation expenses plus profit.

The US District Court for the Southern District of California said the term does not imply a lack of profit and the US Court of Appeals for the Ninth Circuit affirmed…