By on August 1, 2015

truecarprice

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.

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10 Comments on “TrueCar Involved In “Deceptive Business Practices” Says Lawsuit...”


  • avatar

    DECEPTION = Business.

  • avatar
    HerrKaLeun

    So are the dealers claiming to sue to protect the costumers?

    I don’t see how truecar deceives the buyers. The dealers just have to take out those $300 out of their profit and can reduce their advertising cost. Other than that, why are dealers participating? Ultimately they get a lead and sell a car, so they should pay for that lead out of their cost. If they think it is not worth $300 to get a lead, then get your own leads.

  • avatar
    Conslaw

    The dealers didn’t file this suit to win it. They sued to get publicity about TrueCar’s cut of its referral sales. The point having been made, I predict the suit goes away quickly.

  • avatar
    stuki

    Whatever side effects may arise from complete, untrammeled anarchy; must surely be worth it, just to avoid any more of this kind of sleaze and idiocy. Similarly, for all the supposed evils of Sharia, at least Allah had the sense to leave this kind of drivel out of it.

  • avatar
    TW5

    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.

  • avatar
    pesteele

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

  • avatar
    Sky_Render

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

  • avatar
    wmba

    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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