- May 1, 2005
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The New York City Department of Consumer and Worker Protection (DCWP) filed a lawsuit against CarGurus vehicle marketplace in the New York State Supreme Court for misleading customers over vehicle prices on its website.
Core Allegations: CarGurus allegedly misled consumers by labeling vehicle listings as "Good Deals" or "Great Deals" while failing to disclose mandatory dealer fees, down payments, and trade-in requirements
The city claims to have found more than 2,000 violations of the New York City Consumer Protection Law. The lawsuit seeks a permanent injunction to stop the deceptive practices and civil penalties of up to $3,500 per violation.
CarGurus’ response: “We are deeply disappointed that the New York City Department of Consumer and Worker Protection (DCWP) is bringing claims against CarGurus,” the statement said. “We’re also surprised they’re taking this step given our history of leading the market in information transparency, our open collaboration with them, and our repeated efforts to engage productively with them."
CarGurus and other third-party listing sites had to adjust their listing policies after a Federal Trade Commission decision in March told 97 dealership groups it considered it illegal to advertise prices omitting mandatory dealership charges, like document fees and pre-installed vehicle accessories. It said advertised prices have to be true, out-the-door prices, with the exception of government fees and taxes. Read More
Is NYC overstepping?
What's going to happen with this?
Core Allegations: CarGurus allegedly misled consumers by labeling vehicle listings as "Good Deals" or "Great Deals" while failing to disclose mandatory dealer fees, down payments, and trade-in requirements
The city claims to have found more than 2,000 violations of the New York City Consumer Protection Law. The lawsuit seeks a permanent injunction to stop the deceptive practices and civil penalties of up to $3,500 per violation.
CarGurus’ response: “We are deeply disappointed that the New York City Department of Consumer and Worker Protection (DCWP) is bringing claims against CarGurus,” the statement said. “We’re also surprised they’re taking this step given our history of leading the market in information transparency, our open collaboration with them, and our repeated efforts to engage productively with them."
CarGurus and other third-party listing sites had to adjust their listing policies after a Federal Trade Commission decision in March told 97 dealership groups it considered it illegal to advertise prices omitting mandatory dealership charges, like document fees and pre-installed vehicle accessories. It said advertised prices have to be true, out-the-door prices, with the exception of government fees and taxes. Read More
Is NYC overstepping?
What's going to happen with this?
