California New Car Dealers Association Brings Legal Action against TrueCar for Non-Compliance with State's Laws

Litigation Charges TrueCar with Noncompliance with Key Sections of the California Vehicle Code and Non-Transparency with Consumers

SANTA MONICA, CA -- May 20, 2015: California New Car Dealers Association today filed legal action against Santa Monica-based TrueCar for its noncompliance with various sections of the California Vehicle Code (“CVC”) pertaining to dealer licensing, brokering, advertising and disclosure. Patricia Glaser of the highly respected law firm Glaser Weil filed this litigation in Santa Monica.

“Quite simply, it is only acceptable to offer new services to consumers if those meet the legal structure in place which was created to protect consumers. TrueCar, like the rest of us, must follow the law.”

In legal action filed today, in Los Angeles Superior Court Santa Monica branch, TrueCar is charged with violating key statutes and because of this, both the consumer and new car dealers are not being protected. Based on its conduct, TrueCar acts as a “Dealer” and a “Broker,” we believe TrueCar is in violation of existing consumer protection laws, as TrueCar does not have a Dealer or Auto Broker license.

“So called technology advances do not permit ignoring the law,” says Patricia Glaser of Glaser Weil. “Quite simply, it is only acceptable to offer new services to consumers if those meet the legal structure in place which was created to protect consumers. TrueCar, like the rest of us, must follow the law.”

“We will fight what we believe is this lack of transparency in the courts because it is clear to us and should be now clear to consumers that laws are being broken,” comments Brian Maas, President of California New Car Dealers Association.

Today’s legal action requests the court to order TrueCar to comply with California law. The relief requested calls into question the Company’s business model as it relates to California consumers.

The California New Car Dealers Association is composed of 1100 members across the state of California and the organization’s mandate is both protection of their members’ interest and consumer protection.