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CarGurus in Texas: Dealers Safe From Fines? | DrivingSales News

CarGurus in Texas: Dealers Safe From Fines?

May 4, 2015 0 Comments

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We have an update to a story we covered previously. We told you last week CarGurus was facing heat from the Texas Department of Motor Vehicles Enforcement Division. That government organization penned a letter to CarGurus asking them to take down their used car advertising in the state of Texas because it contained verbiage found to be overly descriptive of a good or bad deal. In Texas, there are strict guidelines that prohibit used car advertisements from describing any type of discount. The state had threatened to fine dealers who use CarGurus as much as $10,000 per day per violation.

When we left off, CarGurus said the following to DrivingSales News: “We are working closely with the Texas Department of Motor Vehicles on this issue right now, and we expect to have a resolution very soon. Once resolved, we will communicate immediately with our dealer customers in Texas. CarGurus helps millions of consumers shop for great car deals and connect with great local dealerships. We have partnered with many Texas dealerships and many thousands of dealers across the country, and we look forward to helping them grow their businesses even further.”

Today, we have the follow-up. It’s a letter from William P. Harbeson, the Director of Enforcement for the Texas Department of Motor Vehicles to CarGurus’ Director of Legal, Allison Beakley. His letter reads:

“Dear Ms. Beakley

Thank you for meeting with us this morning. This letter is to confirm that the Texas Department of Motor Vehicles Enforcement Division is actively working with CarGurus to ensure that all Texas motor vehicle dealer advertisements appearing on the CarGurus website are in compliance with department rules. The department will review the suggested revisions submitted by CarGurus and will notify you of our decision on the proposed changes no later than May 7, 2015. In the interim, the department will abate any enforcement action relating to used motor vehicle savings claim advertisements appearing on the CarGurus website. Again, thank you for your cooperation in this matter and I am hoping we can quickly resolve this matter in an amicable manner.”

It’s now clear that the two sides are in active talks to resolve this matter. The question is whether or not the state will allow the proposed changes submitted by CarGurus. For the time being it appears Texas dealers involved with CarGurus are safe from any fines. We will keep you updated on this story as more details emerge.

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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