A lawsuit brought forward by a group of 100 auto dealerships are alleging car-buying service TrueCar of "deceptive business practices" in a lawsuit, 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.
The post TrueCar Involved In "Deceptive Business Practices" Says Lawsuit appeared first on The Truth About Cars.
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