The California New Car Dealers Association and a popular Southern California car-buying site have announced that they have settled long-standing litigation.
The CNCDA, which is based in Sacramento and represents more than 1,100 dealers, originally filed a lawsuit against Santa Monica-based TrueCar Inc. in May 2015, contending that the latter’s automotive pricing and information website violated state law. TrueCar charges fees to participating dealers who offer cars for sale through its website.
CNCDA also contended that TrueCar was violating California Vehicle Code sections requiring vehicle dealers and brokers to be licensed, and that TrueCar had produced false and misleading advertising, and engaged in unfair competition. The CNCDA alleged that TrueCar’s advertised claims of “no surprise or hidden fees” were false, because TrueCar received a fee on each sale made through its website.
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