FTC Pressure Prompts TrueCar Pricing Policy Change
TrueCar will implement a new vehicle pricing standard as part of an effort to help dealers remain in compliance with federal regulations against deceptive tactics, the company announced.
Prices for units sold through TrueCar will now include mandatory and add-on dealer and documentation fees, each clearly listed below the total.
In a release, executives say the move was prompted by warning letters sent by the Federal Trade Commission to 97 U.S. franchised dealerships in March. Citing complaints, FTC investigators were “concerned” the targeted dealers were “advertising prices for cars that are lower than what you actually charge customers,” according to FTC Director of Consumer Protection Chris Mufarrige.
“TrueCar has always been built on price transparency; it is our founding principle,” writes founder and CEO Scott Painter. “The FTC’s current enforcement validates that approach. Our commitment to dealers and customers is that every vehicle listing on TrueCar complies with, and in many cases exceeds, what federal and state authorities require. Most recently, we updated our Dealer Agreement to ensure our platform remains a transparent and compliant marketplace.”
