Vroom Settles with FTC Over Deceptive Practices Allegations
The Federal Trade Commission (FTC) announced on Tuesday that Vroom has settled with FTC in a proposed settlement requiring them to pay $1 million.
The FTC took action against Vroom for engaging in deceptive practices towards consumers.
Vroom Settles with FTC Over Allegations of Deceptive Practices
The FTC's complaint alleged that Vroom misled customers in three key areas:
- Misrepresenting Vehicle Inspections: Vroom allegedly advertised that all vehicles underwent thorough inspections before being listed for sale. The FTC contended these inspections were not as comprehensive as advertised.
- Unapproved Shipping Delays: The FTC alleged Vroom did not obtain customer consent for delays in vehicle shipments.
- Untimely Refunds: When cars were not delivered on schedule, Vroom allegedly failed to promptly issue refunds to frustrated customers.
Settlement Requires Reimbursement and Compliance
The funds from the settlement will be used by Vroom to reimburse affected consumers. Vroom setttles with FTC with the agreement to refrain from these deceptive practices and to ensure all required disclosures are provided in the future.
Used Car Dealer Vroom Reaches $1 Million Settlement With FTC
The Federal Trade Commission said that the settlement money will be used to refund consumers harmed by the Texas-based company’s “unlawful practices.”https://t.co/Gq2CkZtwkA
— The Epoch Times (@EpochTimes) July 3, 2024
Source: Twitter/The Epoch Times
Vroom maintains that the FTC's allegations are rooted in challenges faced during the pandemic that impacted its now-defunct ecommerce operations.
The company emphasized that the settlement does not constitute an admission of wrongdoing and that they are satisfied to have definitively resolved the matter.
Shifting Gears at Vroom
In January of this year, Vroom announced the closure of its ecommerce operations and a gradual wind-down of its used vehicle dealership business.
This move aimed to improve Vroom's financial stability and allow them to focus on maximizing value for stakeholders through their remaining ventures.
The ecommerce shutdown was largely completed during the first quarter of 2024.
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