The Federal Trade Commission (FTC) has reached a settlement with online used car dealer Vroom over allegations of deceptive practices. Vroom is accused of falsely claiming that all vehicles were thoroughly inspected before sale and failing to obtain consumer consent for delayed shipments. Additionally, the company allegedly did not provide prompt refunds when cars were not delivered as promised.
The FTC’s complaint highlights that Vroom’s advertising promised fast deliveries and multiple vehicle inspections, but consumer complaints revealed issues such as poor vehicle conditions and significant delivery delays. The company reportedly misled consumers about the quality and timeliness of their purchases, failing to offer adequate options for canceling or adjusting orders when delays occurred.
Under the proposed settlement, Vroom is required to pay $1 million to refund affected consumers and is prohibited from making misleading claims about vehicle inspections and delivery times. The settlement also mandates that Vroom adhere to FTC rules, including providing accurate information on warranties and ensuring compliance with the Used Car Rule and other related regulations.
This action underscores the FTC’s commitment to protecting consumers from fraudulent practices in the online marketplace. The settlement aims to rectify the issues caused by Vroom’s deceptive practices and ensure that the company follows the necessary legal and regulatory requirements moving forward.
