CNCDA lawsuit against auto broker TrueCar moves forward

California New Car Dealers Association Lawsuit Against TrueCar Moves Forward
DrivingSales News •
We reported numerous times last year that TrueCar was at the center of major lawsuits and at least one of those is reportedly moving forward in California.

A recent reported indicates a complaint by the California New Car Dealers Association (CNCDA) against TrueCar, “properly states a legal claim for violation of the California Unfair Competition Law.” A press release from CNCDA, indicated the dealership associations, “alleged all along that TrueCar violates the California Vehicle Code (CVC) because TrueCar functions as a dealer and as an auto broker without having the required licenses under the CVC, and without complying with other requirements for auto brokers under the CVC, such as disclosing the amount of TrueCar’s fee to the dealer’s customer.”

Also in the press release was the claim that former TrueCar chairman and CEO Scott Painter said, “that TrueCar’s competitors are the dealers who do not participate in the TrueCar network.”

The same report indicated that during that TrueCar stated they would get a broker’s license if the court requires them to do so.

Speaking about the recent developments in the case was CNCDA president, Brian Maas. In a statement Maas said in part, “Up until now, TrueCar has refused to produce even one document or email, nor has it made available any witnesses for testimony on TrueCar’s practices. With the Court’s explicit overruling of TrueCar’s procedural challenges, we look forward to receiving appropriate evidence and testimony from TrueCar’s representatives, past and present, that bear upon the CNCDA’s claims and proving them to the satisfaction of the Court.”

TrueCar reportedly has 30 days to answer the complaint from CNCDA. This legal development comes on the heels of the new “dealer pledge” announced by TrueCar CEO Chip Perry.