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US: More than 100 car dealers accuse Carfax of monopoly

By  |  April 25, 2013
US: More than 100 car dealers accuse Carfax of monopoly

Carfax, an online vender of vehicle history reports, is being accused by more than 100 car dealerships in New York of monopolizing the industry by forcing the dealers to pay hundreds of thousands of dollars for the reports, which they claim are substandard. Maxon Hyundai Maxda leads the case, along with 119 other dealerships, in a federal complaint. According to court documents, plaintiffs accuse Carfax – one of 10 venders of the reports – of controlling more than 90 percent of the market through exclusivity agreements. According to the plaintiffs, if dealers do not buy into the agreement, consumers are likely to assume an absence of a listing suggests a “blemished history” of that automobile. The dealers are asking for at least $50 million.

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