California questions TrueCar’s true nature

TrueCar finds itself at the centre of a legal controversy in California regarding its entire business model. The California New Car Dealers Association (CNCDA) has filed legal action against the company for what it claims is a violation of certain aspects of the California Vehicle Code (CVC) relating to dealer licensing, brokering, advertising and disclosure. Essentially, it claims that TrueCar is acting as a dealer and an autobroker, and is therefore subject to certain legal requirements which have not been met.