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Virginia Speaks Out Against TrueCar Model

More fuel to the TrueCar fire as the Virginia Motor Vehicle Dealer Board sends a letter to Scott Painter, CEO of TrueCar, Inc. 


A link to download the original letter is shown below, and here is what is says:

DOWNLOAD ORIGINAL PDF FILE HERE: Virginia Motor Vehicle Dealer Board-Scott Painter TrueCar Zag.pdf

Views: 1253

Tags: painter, scott, truecar, virginia

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Comment by Philip A Richmond on January 4, 2012 at 12:23pm

Add Oklahoma to the list.  The issue of True Car will be on the agenda of the OMVC this month.  Speaking with several dealers and attorneys, the general concensus is that True Car's business model is in violation of our laws against brokering.     

Comment by Barbara Armour on December 27, 2011 at 8:31am

Great post ( as always) Brian. Many thanks :-)

Comment by Jason Manning on December 24, 2011 at 10:24pm

TrueCar must follow TrueLaws. 

Comment by James A. Ziegler on December 23, 2011 at 5:01am

Before this is over...I predict government regulators will lock down many sources of loose data floating around. TrueCar data comes not only from our dealers DMS but from other sources that originally lifted the data from a dealers' DMS. I don't want to name those sources now because it would take the focus off of TrueCar and start too many side fragmented conversations. Just remember I said this.

Comment by Heather Graham on December 23, 2011 at 4:43am

I just posted a message from WANADA - Washington Area New Auto Dealers Association

Thanks for that letter to Scott from VA and thanks for the Florida info!

Comment by James A. Ziegler on December 22, 2011 at 2:45pm

Uh-oh, now Florida...BUT wait til you see what's coming next!

Comment by James A. Ziegler on December 22, 2011 at 2:45pm


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Thursday, December 22, 2011

Attention All FADA Dealer Members

Important Information related to dealers and their use of True Car/ZAG

From: Ted L. Smith, CAE, President  (DD) 850-224-2580

True Car/ZAG is definitely in the news across the country and you should take immediate steps to educate yourself fully on all of the legal and business issues involved in your contract with this vendor.

Most states are focusing on the potential or alleged violations of their state advertising laws and laws concerning brokerage or “bird dog” fees.  Please remember that under Florida law you as the licensee are responsible for any violations with respect displaying and advertising vehicles.  (F.S. 320.27(9)(b)3 -  Misrepresentation or false, deceptive, or misleading statements with regard to the sale or financing of motor vehicles which any motor vehicle dealer has, or causes to have, advertised, printed, displayed, published, distributed, broadcast, televised, or made in any manner with regard to the sale or financing of motor vehicles.)

As important are the issues surrounding the collection of data from a dealer’s DMS system and the issues involving privacy and security of that data.

With so many issues being discussed and the potential for concerns we would urge you to contact your attorney to discuss your options and the impact of Florida law on your dealership’s advertising practices associated with this or any other vendor that you employ to display pricing scenarios.

Florida law requires that the advertised price include dealer pre-delivery service charges and it appears that the True Car web pricing excludes these charges and adds them later on the pricing page.  The Attorney General’s office has not yet, to our knowledge, ruled on whether this methodology is a violation of S.501.976 of Florida statutes.

The states of Kansas and Colorado have issued warnings to dealers about per se violations of brokering and advertising laws.

Please be aware that there are legal issues of privacy, data use and ownership, as well as data access, when you allow an unrelated third party to access your DMS system.

You should pay specific attention to what information is being mined from your DMS system and how that data is being used and/or controlled. Does your new Privacy statement take this sharing into account?   If you are an open portal for data mining, you may also find yourself drawn into a complaint about data misuse.  You must decide for your store(s) whether it is a good idea to give any vendor or business partner access to your DMS.

CLICK HERE to access Florida Advertising Guidelines (login required)

FADA is pleased to provide the advertising guidelines (not all inclusive) to FADA dealers as a means of assisting you as you place advertisements in paper formats and in electronic sources throughout the state and on the Internet.

The regulatory authority for dealer advertising in Florida is the Office of the Florida Attorney General and various others, such as municipal governments that may have local ordinances governing dealer ads.  Our industry has some specific statutes (Florida’s Decep

Comment by Keith Shetterly on December 22, 2011 at 1:55pm

Sing it, Brother Ralph!  Well said!!!  DEALERS DO NO **NEED** TRUECAR!!!  It's not incremental business to a dealer--just incremental sales to TrueCar.

Comment by Ralph Paglia on December 22, 2011 at 12:52pm

So... Virginia Car Dealers could be assessed civil penalties or their license could be suspended or revoked if they compensate TrueCar or an other unlicensed entity under any and all of the scenarios that involve utilization of the TrueCar vehicle purchase program.  That is a pretty heavy cross to bear just to get lazy and give all your data to TrueCar so they can figure out how to assess your dealership $300 every time they decide to put their name on a deal your sales people got a $100 mini to deliver!

Comment by AndrewBarter on December 22, 2011 at 7:18am

3 down and 47 more to go...

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