According to the FTC, Vroom has agreed to pay $1 million to settle allegations that it misled consumers by claiming that all vehicles were inspected before being listed for sale. The Federal Trade Commission (FTC) accused the used car company of not fulfilling its promises to consumers and failing to deliver vehicles on time.
The settlement, announced on July 2, will see the funds used to refund consumers affected by Vroom’s deceptive practices. As part of the agreement, Vroom is prohibited from making misleading claims about inspections or shipping and must document all claims made to consumers regarding shipping times.
In addition, Vroom must adhere to the Mail, Internet, and Telephone Order Rule (MITOR), the Used Car Rule, and the Pre-Sale Availability Rule. The settlement follows a complaint filed by the FTC against Vroom in the U.S. District Court for the Southern District of Texas, alleging that the company deceived customers and failed to provide necessary disclosures.
Despite Vroom’s claim of rigorous inspections on all vehicles listed for sale, consumer complaints later revealed issues such as vehicle condition and worn brakes. The FTC also alleged that Vroom failed to meet promised delivery timelines and provide consumers with necessary information, such as a “buyers guide.”
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated, “Vroom promised fast deliveries of thoroughly inspected cars but failed to comply with the law. Online car dealers must provide required disclosures like any other business.”
Vroom announced in January that it would discontinue its e-commerce operations to focus on other business ventures, including an automotive finance company and an AI-powered vehicle matching service. The Epoch Times has reached out to a Vroom spokesperson for further comment.
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