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Online Car Dealer Kickbacks

Many states, including California, have laws against car dealer kickbacks—where a third-party is paid by a car dealer for referring customers to that car dealer. For example, some online car referral services are alleged to have been induced by car dealerships to "recommend" or refer customers to those specific dealerships. Such California car dealer kickbacks are illegal, and companies or people who are involved in such schemes could be subject to car dealer kickback lawsuits.

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California Car Dealer Kickbacks

In some cases, consumers in California may have been looking for a specific car and run an Internet car search to find the car they wanted. They may have been taken to a third-party car finder website, and then referred to a car dealership to go to for the actual purchase of that car. Some third-party car listing sites, however, have been accused of accepting inducements—often in the form of cash—from car dealerships for sending customers to their dealerships.

Car Dealer KickbacksFurthermore, California consumers who purchased a car through an organization that uses a car buying service may also have been victimized by illegal inducements. For example, some organizations have car purchase member benefits that offer their members a "best price" on vehicle purchases if they use a car buying service. That service may also have been given car dealer kickbacks or inducements for recommending certain dealerships.


Consumers do not need to know that an illegal kickback or inducement was given to have been victimized by it--and more often than not may not realize that they have been referred to a car dealership as the result of an illegal dealer kickback.

TrueCar Investigation

Some attorneys and state regulators are investigating possible illegal kickbacks to online car referral company TrueCar. Among the states that have or are investigating TrueCar are Colorado, Louisiana and Virginia. Consumers would have visited the TrueCar website, entered the information for the type of car they wanted to buy and been referred to a local dealership for the best price on that vehicle.

If TrueCar acted as a broker, and received compensation as a broker, but did not have a broker license, it may have violated California consumer laws.

California Online Car Purchase Illegal Tactics

In addition to possibly receiving illegal kickbacks for referring customers, some referral companies are alleged to be involved in other online practices that violate California law, putting consumers at risk of being victimized by unethical companies.

California Illegal Car Kickback Lawsuit

In many cases, the consumer might not even be aware anything illegal or unethical has occurred. In fact, many purchasers are likely unaware of the alleged kickback to the referring company. This does not mean that they cannot join or file a lawsuit against the referrer.

If you bought a car in the past four years through a referring company, or through an organization that obtained a lower price on vehicles for members or employees, there might have been an unlawful kickback in your transaction.



Car Dealer Kickback Legal Help

If you or a loved one has suffered similar damages or injuries, please click the link below and your complaint will be sent to a lawyer who may evaluate your claim at no cost or obligation.
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CAR DEALER KICKBACK LEGAL ARTICLES AND INTERVIEWS

Company Investigated for Alleged Car Dealer Kickbacks Re-inventing
Company Investigated for Alleged Car Dealer Kickbacks Re-inventing
March 18, 2013
Los Angeles, CA While investigations and allegations continue over whether or not online automotive referral service TrueCar accepted illegal car dealer kickbacks from their participating dealers, the online company has taken steps to re-invent itself. Pundits are dubbing the transformation “TrueCar 2.0.&rdquo READ MORE

Attorney Investigating Online Car Referrer
Attorney Investigating Online Car Referrer
February 20, 2013
Los Angeles, CA Attorneys and various state regulators have begun investigations into TrueCar, an online car referral website. Investigations revolve around whether TrueCar violated the law by accepting payment for referring customers to specific car dealers. If TrueCar did receive car dealer kickbacks, it may have violated consumer protection laws in California and other states READ MORE

Online Car Referral Bait and Switch: Old Tricks, New Technology
Online Car Referral Bait and Switch: Old Tricks, New Technology
February 10, 2013
Los Angeles, CA If you’re like most computer savvy people today, you’ll go online to research your purchases. Whether you intend to buy online or retail, the draw of the Internet translates to increased awareness and information for the consumer that can be brought to the fore when it comes time to make an educated purchase. As the late advertising guru David Ogilvy famously espoused, “an educated consumer is the best customer.” However, when it comes to car dealer kickbacks, that educated consumer suddenly becomes an unwitting victim READ MORE

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