TrueCar Class Action Investigation

This class action investigation is focused on TrueCar, Inc. and its false advertising and unfair competition with non-TrueCar dealerships.  TrueCar claims it will offer customers “a radically new way to save even more on [his/her] next car.” Contrary to TrueCar’s advertising claims, the consumer must negotiate and “haggle” with the TrueCar dealers to achieve the actual purchase just as they would need to do with any other non-TrueCar dealer. TrueCar customers may be surprised to learn that the promised vehicle may not be available at all or not be available at the advertised price or financing terms.

TrueCar tells consumers that by using its services, they can buy an automobile with no “haggling” and “no negotiation” and that it benefits consumers by “removing surprises at the dealership” resulting in a purchase at a “guaranteed” low price. TrueCar claims customers can achieve this by simply logging onto TrueCar’s website and printing or downloading a price certificate. Using this certificate, they can get the best price from the participating dealership.

On its website at www.TrueCar.com, TrueCar states on its homepage:

“Buying a car can be stressful. That’s why we decided to reinvent it. We believe that car buying should be transparent and anxiety free. So we partnered with like-minded dealers to address the primary stress point – the negotiation and haggling of price. How do we do this? It’s simple. We show you what others paid for the car you are considering. That gives you confidence that TrueCar Certified Dealer prices are honest and fair. Then our dealers offer guaranteed savings to TrueCar customers for new vehicles in-stock and on the lot. See what others paid. Get Guaranteed Savings. Never overpay. It’s really that simple.”

TrueCar also promises that “Information is Power”:

“With TrueCar, you don’t have to be an expert to be an expert. As a data company, we study millions of purchase transactions every year. We also monitor daily what people are paying for their cars. Within minutes, you can get upfront pricing information from TrueCar Certified Dealers and know how those prices compare to the current market. So you’ll never overpay. That’s a powerful feeling.”

It has been reported that TrueCar merely acts as a referral service that provides TrueCar’s affiliated dealers with customer leads and contact information, which leaves customers with a barrage of emails and unwanted information. Contrary to TrueCar’s advertising claims, the consumer must negotiate and “haggle” with the participant dealers to complete the actual purchase just as they would need to do with any other non-affiliated dealer. TrueCar’s alleged false advertising diverts consumers away from non-participant automobile dealerships, resulting in lost sales and harm of goodwill.

It has also been reported that TrueCar customers will be surprised to learn that the promised vehicle may not be available at all or not be available at the advertised price or financing terms. TrueCar’s alleged false or misleading advertising includes, but is not limited to:
• False “no haggle” claims
• Bait-and-switch advertising
• False factory invoice claims
• False financing claims
• False transparency claims
• False rebate claims

So if you or a dealership you know has suffered from lost sales from these alleged TrueCar practices, please reach out to us and help in this investigation against TrueCar. Call us at 213-212-2202 or fill out the form on this page.