Court order proposes the online car dealer pay more than $1 million to reimburse customers.
The Federal Trade Commission has taken action against the online car dealer, Vroom, for misrepresentations of its examination of cars it lists, not getting consent from customers for shipping delays, nor providing refunds promptly when promised delivery times were missed. The agency said the company violated the Used Car Rule, the Pre-Sale Availability Rule and the Mail, Internet, and Telephone Order Rule (MITOR).
“Vroom promised the fast deliveries of thoroughly inspected cars, but sped right past compliance,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Online car dealers and other Internet sellers must provide required disclosures just like any brick-and-mortar businesses that comply with the law.”
The FTC stated, “Numerous consumers complained about the condition of the cars they received from Vroom, with everything from loud grinding noises, bald tires, and worn brakes being reported.“
The proposed settlement would require Vroom to pay the FTC $1 million to provide refunds to consumers and would prohibit the company from further misleading claims. It would also require documentation on claims about shipping times.
As the Lord Leads, Pray with Us…
- For Director Levine to be led by the Lord as he oversees the FTC’s Bureau of Consumer Protection.
- For commissioners of the FTC to be prudent as they assess instances of fraud and deception by companies and marketers.
Sources: Federal Trade Commission
