The vehicle history reporting company Carfax Inc. had a federal lawsuit filed against them this week by 120 dealerships. The owners of the dealerships claim Carfax engages in anti-competitive practices and violates antitrust laws.
The suit, which was filed in U.S. District Court for the Southern District of New York, claims Carfax has exclusive agreements with vehicle manufacturers and automotive classified websites, and is “monopolistic in the sale of vehicle history reports.”
The lawsuit also claims Carfax charges dealers higher prices for vehicle history reports than any other history reporting service. Dealers say they are stuck using Carfax because exclusive agreements between Carfax and certain manufactures require Carfax reports be given to customers. Without the history report, dealers would not be able to participate in the manufacturers’ certified pre-owned programs.
Source: Automotive News