California New Car Dealers Association has sued Santa Monica-based TrueCar, accusing it for its disobedience with various sections of the California Vehicle Code ('CVC') concerning brokering, dealer licensing, advertising and disclosure. This litigation has been filed by Patricia Glaser of the highly esteemed law firm Glaser Weil.
TrueCar is charged with breaching key statutes in legal action filed in Los Angeles Superior Court Santa Monica branch; as a result of this both the consumer and new car dealers are not being protected. According to reports, TrueCar is acting as a 'Dealer' and a 'Broker'. It is thought that TrueCar is in violation of existing consumer protection laws as it does not have a Dealer or Auto Broker license.
According to Patricia Glaser of Glaser Weil, "So called technology advances do not permit ignoring the law. 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".
According to Brian Maas, President of California New Car Dealers Association, they will tackle lack of transparency in the courts since it is evident and should also be clear to consumers that laws are being violated.
The legal action appeals the court to order TrueCar to abide by California law. The California New Car Dealers Association consists of 1100 members across the state of California and the organization wants protection of their members' interest and consumer protection. According to reports, the complaint does not look for any monetary relief from TrueCar, their network of Certified Dealer partners, or anyone else.