Used Car Dealer Vroom Agrees to Proposed $1M FTC Settlement for Deceiving Consumers

Dow Jones07-03

By Stephen Nakrosis

The Federal Trade Commission said on Tuesday that Vroom has agreed to pay $1 million under a proposed settlement for misleading consumers.

The FTC said it took action against Vroom for misrepresenting that it thoroughly examined all vehicles before they were listed for sale, getting customer consent for shipment delays and for failing to provide prompt refunds when cars weren't delivered on time.

Funds from the settlement will be used to pay refunds to Vroom's customers. Terms of the settlement would prohibit Vroom from further misleading consumers and failing to provide required disclosures, the FTC said.

Vroom said the FTC's allegations relate to pandemic-era challenges that arose in its discontinued ecommerce operations. The company said under that as part of the settlement it admitted no wrongdoing and that it was pleased to reach a final resolution of the matter.

In January, Vroom said it was discontinuing its ecommerce operations and winding down its used vehicle dealership business to preserve liquidity and allow it to maximize stakeholder value through its remaining businesses. The company said the ecommerce wind-down was substantially completed during the first quarter.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

July 02, 2024 18:02 ET (22:02 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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