1992 Sears Auto Center Fraud

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In 1992 Sears Auto center was charge with fraud by California consumer protection. They were accused of setting quota to their employee to sale a certain number of product or services during their 8-hour work shift. This caused an overcharge that was about $233.00 a car. Auto-repair shops chairman Edward A. Brennan, stated that the incentive compensation program and sales goals created an environment where mistakes occurred but Sear never admitted to any wrongdoing took place. Eventually there were penalties faced, 72 of Sears California auto department was put on three years probation. To deal with this issue Sear gave 46.6 million dollar in coupon to help restore it image. This was considered one of the largest consumer fraud settlements

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