TrueCar to Drop 75 Franchisees in Policy Disputes
Washington DC June 27, 2014; AIADA Online said that Automotive News reported that TrueCar Inc. plans to drop up to 75 of its 8,000 participating franchisees for failing to honor price guarantees made to car buyers or for other violations of TrueCar policies this month according to its President John Krafcik.
TrueCar also will launch a new app in the coming days that allows consumers to take photos of their trade-in vehicles and seek a price for the vehicles from competing dealers in the TrueCar network, Krafcik said.
Krafcik said both developments are aimed at improving the transparency and ease of buying a vehicle. Infractions include failing to provide the price guaranteed a customer through the TrueCar site.
TrueCar Executive Vice President Larry Dominique said those being dropped typically received at least “two strikes,” or warnings, before being dropped. In early 2012, TrueCar had a hard time keeping dealers in its network.
The company nearly folded after regulators in multiple states accused it of violating a variety of advertising and brokering laws. But TrueCar changed its operating methods to come into compliance in all states in 2012. For more on TrueCar’s decision to drop 75 franchises, click here.