Dealerships hit Carfax with $50M Antitrust Lawsuit

Dealerships hit Carfax with $50M Antitrust Lawsuit

Over the years, Carfax has become the dominant used-vehicle history reports provider, and now owners of 120 auto dealerships are filing an antitrust federal lawsuit against the company.

The dealerships are alleging that Carfax engages in anti-competitive practices and violates antitrust laws. All together, they are seeking damages of more than $50 million.

Dealerships from all across America are getting involved, stating that Carfax provides “cash or noncash marketing support” to automakers and classified sites as part of an exclusive agreement to shut out its competitors. In addition, the suit accuses Carfax of charging dealers “a significantly higher price” for vehicle history reports compared to its competitors.

According to the lawsuit, Carfax forces dealers to purchase its vehicle history reports due to exclusive agreements with 37 of 40 manufacturer certified pre-owned programs. And despite not being a focal point of the lawsuit, the dealerships are also alleging that Carfax has inaccuracies in its reports as revealed in a recent ABC News 20/20 segment.

[Source: Automotive News]

  • carguy

    Carfax has always had false information, cars that are sold thru dealer acutions use autocheck, which reports accidents and fram damages that have been notice thru PSI, you can clearly see damages on vehicles, and on Carfax shows nothing, but on autocheck it does, i know alot of insurance companies dont report damages and alot of people dont do police reports, but maybe we should change the insurnce companies to should report any damages over $500