Shipping broker ordered to pay $21K in fines, accused of price gouging Kansas customer
A New York-based auto shipping broker has been ordered to pay over $21,000 in fines and restitution after being accused of pricing gouging a Kansas customer.
A $21,607 default judgment was entered against JK Auto Shipping, which was accused of violating the Kansas Consumer Protection Act, a news release from the Sedgwick County District Attorney’s Office said Monday.
The DA’s consumer protection division reported that JK Auto Shipping engaged in “unconscionable price gouging and deceptive solicitation” after a Kansas customer contracted JK to transport his daughter’s car from Florida to Kansas.
The price to transport to the car was set to $790, where the customer paid a $200 deposit. On the day of the scheduled transport, JK told the customer that the transporter needed $1,000 to deliver the car to Kansas, the DA’s office said.
The consumer reluctantly complied, spending a total of $1,200, a 52% price increase from the quoted price, according to the news release.
The Kansas customer was not identified by the DA’s office.
Kamran Akhtar, the registered agent for JK Auto Shipping, told the DA’s office that he shut down JK Auto Shipping, but its website was still operational. On May 6, 2024, the Federal Motor Carrier Safety Administration revoked JK Auto Shipping’s required registration.
Further investigation by the DA’s office revealed that on July 11, 2024, Kamran Akhtar registered a new auto shipping brokerage corporation, Black and White Dispatch Inc., with the New York Secretary of State, using the same address as JK Auto Shipping.
As part of the Sedgwick County Court’s ruling, JK Auto Shipping is being ordered to pay $410 in restitution to the consumer, $20,000 in civil penalties, along with court costs and investigation fees. The court also ordered JK Auto Shipping to stop engaging in consumer transactions in Kansas until all restitution, costs and fees are paid.
“The District Attorney reminds residents that consumers should exercise care when selecting suppliers of services, especially when contracting with out-of-state business entities,” the news release said.
“When entering into a contract, a consumer should request a written copy signed by all parties. If deposits or fees are paid via credit card and an issue arises, the consumer can dispute the charge with the credit card provider if the supplier fails to deliver the services at the quoted price.
“In this case, JK Auto Shipping refused to accept credit card payments, a red flag to exercise caution,” the DA’s office said.