P&A Providers & Administrators
MenuMENU
SearchSEARCH

Mass Action Suit Filed Against TrueCar

March 10, 2015
2 min to read


MINEOLA, N.Y. — The law firm of Bellavia Blatt & Crossett filed a mass action lawsuit against TrueCar today, claiming that dealers have been injured by the lead provider’s business practices. So far, 117 dealerships are part of the suit — a number Senior Partner Leonard Bellavia expects to rise drastically.


“I have another 50 [dealers] I could have included, but I never would have been able to file the case in a reasonable amount of time,” Bellavia tells F&I and Showroom. “Now that I’ve filed the case, I’m adding more dealers.”

Ad Loading...


The lawsuit filed today in Federal Court for the Southern District of New York represents non-TrueCar affiliated dealerships, meaning dealers that either have not subscribed to TrueCar’s services, or dealers that are former TrueCar subscribers. A second suit representing current TrueCar dealer customers will be filed in the coming weeks. The firm is also currently representing more than 1,000 dealers in an antitrust lawsuit against Carfax.


“Simply because a dealer is using TrueCar does not mean that they are happy with the business practices of TrueCar,” Bellavia notes.


The business practices in question include offering customers a “no haggle” price, a promise Bellavia says the lead provider breaks right at the start of a transaction, violating the Lanham Act and unfair competition and deceptive trade practices under New York statutes.


“When a customer logs on to the website and puts in their data, the information gets shot out to three separate dealers right off the bat,” he explains. “So as soon as the consumer clicks send, they will get inundated with texts, phone calls, emails and letters from three different dealers, each promising to do better than the other. So that's ipso facto haggling.”


In addition, Bellavia says that TrueCar’s business model forces its dealer clients into “bait-and-switch” situations by promising car shoppers that its dealers have certain colors and equipment in stock, even if that is untrue. The firm also alleges that TrueCar claims that its pricing is “below invoice,” which conveys to the consumer that they are getting a vehicle below dealer cost.

Ad Loading...


“It’s just blatantly misleading to the consumer,” Bellavia adds.


As for the non-TrueCar affiliated dealerships represented in the lawsuit filed today, Bellavia says they are adversely affected by the presence of TrueCar dealers in their market.


“[TrueCar] deceives customers in their market area, essentially poaching them,” the firm’s senior partner notes. “If you live within a mile of a dealership, you will see TrueCar commercials and when you go online you will get a certificate for three dealers that are further away than the non-TrueCar dealerships. So dealers are losing business.”

More Industry

Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →
Graphic of last week's estimated used retail days to turn
Industryby StaffMay 6, 2026

Black Book: Weekly Market Update

Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.

Read More →
cargo ship with vehicles, at dock
Industryby Lauren LawrenceMay 5, 2026

EU Auto Association Urges Action

Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.

Read More →
Ad Loading...
two people working on a paper contract together
IndustryMay 1, 2026

Driving into the Super CFC Era

Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.

Read More →