TrueCar Involved In "Deceptive Business Practices" Says Lawsuit

Mark Stevenson
by Mark Stevenson

A lawsuit brought forward by a group of 100 auto dealerships are alleging car-buying service TrueCar of “deceptive business practices”, reports Automotive News.

The lawsuit claims TrueCar’s advertising, which proclaims transparency in vehicle transaction prices for customers, does not disclose the $299 and $399 dollar fees that are paid by dealers for new and used car sales brokered by TrueCar.

The meaning of “transparency” for TrueCar has been brought to question at TTAC before, as has TrueCar’s use of personal data collected on buyers by participating dealers who must provide said data to TrueCar as a condition of receiving high-quality leads. This data access was reported to be the main reason for a split between TrueCar and dealer group AutoNation.

The group of dealers who’ve launched this latest lawsuit say failure to disclose the fees violates California law as those fees are typically bundled into the final transaction price of the vehicle and passed on to the customer.

Mark Stevenson
Mark Stevenson

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  • TW5 TW5 on Aug 02, 2015

    It was only a matter of time. If the dealerships aren't on board with something in the car industry, they'll tie you up in court or attack you in the legislature. Remember when Lang tried to convince everyone that Georgia needed to protect his business by imposing taxes on private party auto sales? Dealership organizations = UAW for wealthy capitalists and their puppets.

  • Pesteele Pesteele on Aug 02, 2015

    Good to know dealerships have our backs on deceptive business practices. At last, I can sleep soundly.

  • Sky_Render Sky_Render on Aug 03, 2015

    TrueCar's advertisements make me giggle. Anyone with a modicum of haggling ability can easily beat TrueCar's prices.

  • Wmba Wmba on Aug 03, 2015

    John Krafcik now runs TrueCar, after being tossed from the Hyundai US CEO position very early last year. Well, you got to do something. You know? As for the dealers: do they disclose the fees paid as commission to the otherwise unpaid salespersons they allow to inhabit their premises and who flog cars to unsuspecting members of the public? Of course not. The suit is without merit.

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