The FTC Settles $1 Million Case with Vroom Over Alleged Violations
Overview of the Case
- Vroom has agreed to pay $1 million to settle a case brought against them by the FTC.
- The government alleged that Vroom did not inspect vehicles as promised and left some consumers waiting months for their car.
- Other violations included not following the Used Car Rule and Pre-Sale Availability Rule.
Online Used Car Dealers Under Scrutiny
Used car dealers, including online platforms like Vroom, have faced scrutiny for their practices. While Carvana has had its share of issues, this time it’s Vroom in the spotlight.
FTC Allegations
The FTC accused Vroom of deceiving customers, failing to deliver on time, and not providing required disclosures. The government claimed that Vroom falsely stated they thoroughly examined all vehicles before listing them for sale and did not obtain consumer consent for shipment delays or provide prompt refunds for delayed deliveries.
Violations and Complaints
Vroom allegedly violated the Used Car Rule, Pre-Sale Availability Rule, and MITOR. Complaints from consumers highlighted issues with purchased vehicles, such as significant mechanical problems like rusted brake rotors and worn tires.
Settlement Terms
Vroom has agreed to a settlement that includes paying $1 million to affected consumers. The company is also prohibited from making misleading claims about inspections or shipping and must adhere to MITOR, the Used Car Rule, and Pre-Sale Availability Rule.
FTC’s Response
While the $1 million settlement may seem lenient, the FTC emphasized the importance of online car dealers following regulations and providing necessary disclosures to consumers.
