Automobile dealers file antitrust class action against Carfax

Posted on: May 23rd, 2013 by Steve Larson
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Fotolia CarScores of dealers throughout the United States filed a $50 million class action lawsuit against Carfax, accusing the vehicle history report company of violating antitrust laws with anticompetitive business practices.  The lawsuit alleges, among other things, that out of the 40 used-car certification programs run by automobile manufacturers, Carfax has 37 exclusive agreements.  In addition, Carfax maintains exclusive listings with Cars.com, AutoTrader.com and other popular used-car sites, consequently creating a monopoly and forcing dealers to use Carfax vehicle history reports for their certified used cars. 

Carfax agreed to a settlement with consumers last year for a previous class action lawsuit which alleged that Carfax violated consumer protection laws by failing to properly disclose the terms, conditions and limitations of its Carfax Vehicle History Reports.