TrueCar nays CNCDA’s complaint

truecaraddTrueCar issued a news release in response to the recent lawsuit filed on behalf of the California New Car Dealers Association The lawsuit seeks a declaration from the court as to whether TrueCar qualifies as a dealer or autobroker under California law.

TrueCar, states that has always been committed to improving the car-buying experience for all participants, including consumers, dealers and manufacturers. TrueCar is confident it can demonstrate the compliance of its business model with California law

TrueCar notes the lawsuit was filed not by any actual California dealers, consumers, or governmental agency charged with the responsibility for enforcing the very laws that are at issue in the lawsuit.

Regulators understand our business model and have taken no enforcement action against us since we began operating in California in 2005.

The California Legislative Counsel Bureau  concluded that the operation of such a web service “does not constitute autobrokering” and the operator of the service “is not a dealer” within the meaning of applicable law.

In October 2014, TrueCar met with representatives of the California Department of Motor Vehicles, which is the regulatory body charged with enforcement of the statutes at-issue in the CNCDA’s complaint. After analyzing TrueCar’s business operations in depth, including specifically those challenged by this lawsuit, the DMV did not request that TrueCar make any changes to its California business operations.

In short, we are proud of the service that we deliver to our users, participating dealers, affinity partners, and manufacturers. If this lawsuit is allowed to proceed we welcome the opportunity to address the issues raised and we expect to be fully vindicated.

To be clear, the complaint does not affirmatively seek any monetary relief from TrueCar, our network of Certified Dealer partners, or anyone else.

A class action lawsuit against TrueCar claims that TrueCar engages in deceptive buying practices, injuring other car dealers. TrueCar responded with the statement, “We believe the lawsuit is meritless.”

When we last checked prices, TrueCar savings were greater than other online price portals.

The California New Car Dealers Association is composed of 1100 members across the state of California and the organization’s mandate is both protection of their members’ interest and consumer protection.