P&A Providers & Administrators
MenuMENU
SearchSEARCH

Firm Suing TrueCar Files Second Mass Action Lawsuit

August 5, 2015
2 min to read


MINEOLA, N.Y. — Bellavia Blatt & Crossett filed a second mass action lawsuit against TrueCar on July 30, this time representing 100 dealerships that are currently affiliated with the car-shopping site.


In March, the law firm filed a mass action lawsuit on behalf of 117 — now over 200 — non-affiliated dealerships, alleging that TrueCar’s business practices have injured its former dealer partners and dealers that do not subscribe to the service by “poaching” customers in their market area.

Ad Loading...


According to the lawsuit filed last week, TrueCar is violating California deceptive practices statutes by claiming to be “transparent” with “no hidden fees” and "no surprises” — when in fact it charges dealers a $299 new-car and $399 used-car transaction fee that gets passed along to the consumer in the price of the vehicle.


“We will be seeking a court order requiring TrueCar to openly disclose in its advertising and on the guaranteed savings certificate that there is a $299/$399 fee participating dealers pay that may affect the selling price of the vehicle,” said Leonard Bellavia, senior partner at Bellavia Blatt & Crossett. “We will also seek a declaration that TrueCar's business model is illegal in most states, as it is not properly licensed.”


Bellavia added that dealers subscribing to TrueCar are damaged because they do not wish to be complicit in violating consumer fraud statutes. The lawsuit alleges that TrueCar is acting as a car dealer and broker without the proper licenses. And if consumers knew about the fees prior to their dealership visit, the dealer would then be protected from joint liability, Bellavia added.


TrueCar has called the allegations “meritless.”


“In the first case, TrueCar recently filed a motion to dismiss — essentially arguing that all of its promises are simply ‘puffery,’” Bellavia said. “It went so far as to quote a case that held it could lie through its teeth with impunity, as consumers would not take any of the promises seriously.”

Ad Loading...


The lawsuit is similar to one filed in May by the California New Car Dealer Association, which alleges that TrueCar is not in compliance with certain sections of the California Vehicle Code pertaining to dealer licensing, brokering, advertising and disclosure.

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →