Texas-based online used car dealer Vroom settles with US regulator amid violations
(MENAFN) Texas-based online used car dealer Vroom has reached a settlement with the Federal Trade Commission (FTC) following accusations of deceiving customers and failing to meet obligations related to vehicle sales. According to the FTC, Vroom misrepresented that it thoroughly inspected all vehicles before listing them for sale and failed to obtain consumer consent for shipment delays or promptly issue refunds when deliveries were delayed.
The settlement, announced on Tuesday, includes Vroom agreeing to pay USD1 million to refund consumers affected by the company's practices. Additionally, Vroom is now mandated to refrain from further misleading consumers and must ensure compliance with required disclosures moving forward.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, criticized Vroom for promising fast deliveries and thoroughly inspected cars while allegedly failing to adhere to these commitments. He emphasized the importance of online car dealers and other internet sellers providing transparent disclosures as mandated by law, akin to brick-and-mortar businesses.
The FTC's enforcement action highlighted numerous consumer complaints regarding the condition of cars received from Vroom, citing issues such as loud grinding noises, bald tires, and worn brakes. Despite Vroom's substantial online sales volume—reportedly exceeding 170,000 vehicles sold since 2019—the settlement underscores the necessity for rigorous adherence to consumer protection laws in online commerce.
The settlement marks a significant regulatory step aimed at ensuring fair practices in the online car sales industry, reinforcing consumer trust and compliance with established legal standards in digital retail transactions.
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