Dealers Accuse Carfax of Monopoly in New Class Action Lawsuit

Dealers Accuse Carfax of Monopoly in New Class Action Lawsuit

By Mike Holter

Over 120 car dealers have filed a $50 million class action lawsuit against Carfax, alleging it is monopolizing the vehicle history report industry and forcing dealers to use Carfax instead of cheaper competitors.

The dealers make a number of claims in the Carfax class action lawsuit, including that Carfax holds exclusive arrangements with 37 out of the 40 used-car certification programs run by automakers, which means dealers are forced to use Carfax in order to provide a vehicle history report on a certified used car.

Carfax also holds exclusive listings with several popular used-car sites, including Cars.com and AutoTrader.com, which means the sites only post vehicles that have a Carfax History Report, effectively forcing dealers to use Carfax, the plaintiffs say.

Carfax reports are more expensive than those from competing agencies at a cost of $16.95 per report, or a monthly subscription of up to $1,549, according to the class action lawsuit.

The dealers are alleging claims of anticompetitive practices and violations of antitrust law for what they say has turned into a monopoly over the used vehicle history report industry.

Carfax agreed to settle a separate class action lawsuit last year filed by consumers who claimed the company violated consumer protection laws by not properly disclosing the terms, conditions and limitations of its Carfax Vehicle History Reports.

Updated May 2nd, 2013

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