TrueCar Sales Under Investigation

The State’s department of revenue is now investigation allegations that have been made against TrueCar sales services and the possibility that they have made violations when it comes to advertising for their services and the possibility that the company may actually be working without meeting the proper licensing requirements, according to the LA Times.

TrueCar is a website that has grown like rapid fire when it comes to Internet sales with referral services. Aside from the investigation, TrueCar is also fighting with Honda Motor Company. This inquiry was launched in Colorado after several complaints came in about the services. The Department of Revenue for the state believes that the company is violating some advertising rules and regulations and believes that TrueCar is not licensed properly to even conduct the sales of cars with car dealers in the Colorado area.

TrueCar released a statement that said, “Addressing technical and procedural questions raised by regulators who may not know what to make of our service…. TrueCar invites and takes seriously questions about consumer protection and is vigilant about ensuring that its partner dealers honor their commitments to buyers.”  TrueCar believes it has done nothing wrong with this situation and that the company only has the customers best interest at heart by trying to help provide a sense of convenience to customers who are looking to buy a car. Unfortunately, some people beg to differ.

TrueCar managed to grow at such a quick speed when it signed up with thousands of different dealers all around the nation that provide customers with upfront prices on vehicles. This allows customers to know how much they have to pay for a car as the prices will be provided upfront. There are a lot of car dealers who, unfortunately, beat around the bush when it comes to the cost of a car and a lot of customers are sick and tired of dealing with such hassle. These car dealers have been paying TrueCar hundreds of dollars for each new car that is sold and for each used car that is sold as well.

The TrueCar online service provides customers with the opportunity to find dealers who post upfront prices on both used and new vehicles. There have been many car dealers who have put their trust in TrueCar only to find out that they may not be working appropriately, with the correct licenses to operate efficiently. The regulators in Colorado have said that TrueCar has made several violations. Such violations include not advertising the vehicle pricing with the cost of delivery fees and handling fees which can be misleading to customers along with using the word “invoice” in advertisement slogans. Aside from these violations, TrueCar is accused of several other violations as well.