TrueCar Sued By California Car Dealers

Santa Monica-based TrueCar has been sued by a group of California car dealers, via the California New Car Dealers Association, which alleges that the auto buying site is noncompliance with California's laws regarding dealer licensing. The California New Car Dealers Association says that TrueCar is acting as a dealer and broker of new cars, and that as a result it is violating California law. The group said that both consumers and new car dealers are not being protected because TrueCar does not have a Dealer or Auto Broker license. TrueCar, in responding to the suit, said that it is confident it can demonstrate the compliance of its business model with California law, and said it has invested a "tremendous amount" of resources into compliance with laws, and that the firm has confirmed that with the California Legistlative Counsel Bureau and the California Department of Motor Vehicles.