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TrueCar, Calif. Dealer Association Settle Lawsuit

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Dec. 18, 2017—The California New Car Dealers Association recently announced that it has settled a lawsuit against TrueCar Inc.

The trade group, which represents nearly 1,100 California dealers, had accused the online car shopping service of operating as an auto dealer without a license from the Department of Motor Vehicles, in a suit that dated back to 2015, according to an LA Business Journal report.

Per the settlement, TrueCar agreed to transition its billing model in California to a flat-fee subscription billing model by 2019.

Additionally, it agreed to double the indemnification that it gives to California dealers who participate in the TrueCar program.

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