Is a boycot by consumers in order if HMC continues this lawsuit and follows through with blocking internet sales of extended warranty.

Judge: Honda can ban online sales of extended warranties

A federal judge in Rhode Island has lifted a temporary restraining order that prevented American Honda Motor Co. from banning online sales of Honda-backed extended warranty contracts.

But Honda said that for now it will allow sales of the service contracts to continue.

Honda had planned to prohibit Honda and Acura dealers from selling the contracts, beginning April 1, 2008. The automaker acted following complaints from the Honda National Dealer Advisory Board. But a top online seller of the contracts, family-owned Saccucci Honda in Middletown, R.I., sued and won the temporary restraining order on March 28.

Geoff Millsom, attorney for the Saccuccis, said the case will go to trial.

“The question was whether the restraining order would stay in place while the trial is in place,” Millsom said. “No matter what, there will be a trial.”

Millsom said no court date has been set. He said attorneys will meet with Judge Mary Lisi on Tuesday, Feb. 3 to determine the schedule.

“The judge said at this stage there was not enough evidence for her to take the extraordinary step of extending the restraining order,” Millsom said.

Honda said it still will allow dealers to sell the contracts online.

“We’re not taking any action until the suit is resolved,” said Honda spokesman Chris Martin. “We don’t want to confuse the dealers.”

Saccucci Honda is owned by 83-year-old Cora Saccucci and her two daughters, Barbara and Carol. The dealership was selling as many as 250 Honda extended-service contracts monthly online and reaping from $60,000 to $95,000 in factory bonus money based on volume.

Honda supported the Saccuccis’ online sales effort until other dealers complained. Other Honda and Acura stores said they lost in-store sales to online competitors, who often sold the contracts at near cost.

Barbara Saccucci said of the judge’s decision: “We were disappointed.”