Automakers, Ex-NFL Players Touted ‘Set for Life Program’ Despite Knowing Penn. Dealerships Would Fail, Class Action Alleges

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The Nissan, Hyundai and Kia dealers that once made up Luzerne County, Pennsylvania’s Hazleton Auto Mall, as well as the automakers themselves and the dealerships’ former owners, face a proposed class action that alleges the parties continued to tout the “Set for Life Program” despite knowing the businesses were failing and would not be able to provide the advertised services for as long as consumers owned their cars.

The lawsuit claims the defendants, among whom are former NFL players Antonio Pierce and Jessie Armstead, who owned the now-shuttered Hyundai and Kia dealerships, continued to tout their Set for Life Program even as it became clear to the corporate automakers in 2018 that the businesses would not survive and therefore could not provide the advertised free benefits to drivers.

“At all times material hereto, Manufacturers knew or should have known that Dealerships, as a result of their deteriorating financial condition, could not possibly continue to represent that the Set for Life Program’s benefits would be available to consumers for as long as they owned their vehicles,” the complaint claims. 

According to the complaint, the Hazleton Auto Mall opened in November 2016 and offered, with the overseeing automakers’ knowledge and approval, a “Set for Life Program” through which car buyers could receive powertrain/engine/transmission warranties, free oil and filter changes, free car washes, free loaner vehicles and free state inspections for as long as they owned their vehicles. Per the case, the Set for Life Program was heavily marketed and advertised by the defendants, including in brochures and signage emblazoned with the automakers’ trademarked logos and on radio and television. 

With their rampant marketing and advertising, the defendants “intended to create the expectation among potential car purchasers” that Nissan, Hyundai and Kia guaranteed the benefits from the Set for Life Program would actually be provided, the suit relays. According to the complaint, the defendants further touted the virtues of the Set for Life Program during meet and greets with Armstead and Pierce at the dealerships’ facilities. During these appearances, the case says, the defendants extolled the virtues of the program in an effort to induce customers into buying or leasing new vehicles. 

Shortly after the dealerships opened, however, the businesses “began experiencing financial difficulties,” the lawsuit claims. Notwithstanding the companies deteriorating financial situations, the automakers continued to “impliedly authorize and/or ratify” the dealerships’ continued advertisement of the Set for Life Program with the hope that it would generate sales and thereby help the companies climb out of the red, according to the case. 

In truth, though, Nissan, Hyundai and Kia “knew or should have known” the dealerships, given their financial condition, “could not possibly continue to represent that the Set for Life Program’s benefits would be available to consumers for as long as they owned their vehicles,” the lawsuit alleges, noting the Hazleton businesses went belly up in September and November 2018, less than two years after opening. 

The breach-of-contract lawsuit, which was removed to federal court on October 7, looks to represent all Pennsylvania residents who bought or leased a car at the Hazelton Auto Mall in Hazle Township from the Hazelton Nissan, Hazelton Hyundai and/or Hazelton Kia dealerships between November 1, 2016 and November 30, 2018.

Named as defendants are Nissan North America, Hyundai Motor Company, Kia Motors America, Airport Road Motors N., Airport Road Motors Hy., Airport Road Motors K., Michael S. Saporito, Antonio Pierce and Jessie Armstead. 

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