Used car dealer Vroom settles with US regulator amid violations

By Ovunc Kutlu

ISTANBUL (AA) - Texas-based online used car dealer Vroom settled with a US regulatory agency for deceiving customers, failing to deliver on time and provide required disclosures.

The Federal Trade Commission (FTC) said Tuesday it has taken action against the company "for misrepresenting that it thoroughly examined all vehicles before listing them for sale and failing to obtain consumers’ consent to shipment delays or provide prompt refunds when cars weren’t delivered in the time Vroom promised."

As part of the settlement, Vroom is required to pay $1 million to refund consumers harmed by the company’s conduct, and it is prohibited from further misleading consumers and failing to provide required disclosures, it added.

"Vroom promised the fast deliveries of thoroughly inspected cars, but sped right past compliance," Samuel Levine, director of the FTC’s Bureau of Consumer Protection said in a statement. "Online car dealers and other Internet sellers must provide required disclosures just like any brick-and-mortar businesses that comply with the law."

"Numerous consumers complained about the condition of the cars they received from Vroom, with everything from loud grinding noises, bald tires, and worn brakes being reported," said the statement.

Since 2019, Vroom has sold more than 170,000 vehicles to consumers through its website, according to the FTC.