Judge Rules Auto Dealer's Lawsuit Against TrueCar Can Go to Trial

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Washington DC April 3, 2019; The AIADA newsletter reported that over the past four years, TrueCar has changed its business model and leadership team to improve its relationship with dealers, but 2015 litigation accusing the company of false advertising could head to trial this year, according to Automotive News.

Consumers were attracted to TrueCar based on the promise of no hassel or surprises at the dealership.

In 2015, 108 dealers filed a lawsuit accusing TrueCar of falsely advertising haggle-free car-buying.

The dealers argued that TrueCar's false advertising decreased their sales and hurt their reputations. The plaintiff dealers do not subscribe to TrueCar.

TrueCar asked for a summary judgment in July. Kevin Castel, a judge in the U.S. District Court in the Southern District of New York, last week denied TrueCar's motion for summary judgement regarding its potential violation of the Lanham Act, a federal false-advertising statute that prohibits businesses from deceptively advertising their products and services.