Dealer Group Sues Autotrader For $1.5 Million Over Allegations Of Double-Counting Page Views

Two New York car dealerships are suing Autotrader for $1.5 million over allegations that the online car-selling giant double-counted the number of shoppers viewing its car listings over five years and hid the issue to retain the subscription.

B&Z Auto Enterprises, which owns Riverdale Chrysler-Jeep and Eastchester Chrysler-Jeep-Dodge, said in its complaint that inflated page views convinced the group to subscribe to Autotrader in June 2010 and to remain a customer until last month. The group says that it is therefore entitled to $1.5 million in subscription fees and advertising spent at Autotrader over that time as well as damages.

Autotrader argues that it sells advertising space, not page views, but B&Z claims that the website used promotional materials that boasted about the number of page views that it draws as a way to attract dealers. The group claims that it received monthly reports from Autotrader indicating how many shoppers made searches of its vehicles on the website and how many delved deeper to view an actual vehicle listed in stock.

“In particular, Autotrader’s marketing and advertising communications emphasize, as their main selling point to dealers, a number of statistical metrics that are designed to convey the purported efficacy and benefits of the online advertising that Autotrader offers,” the complaint said. “However, the ‘advertising reach’ statistics that Autotrader used to induce plaintiff B&Z and other dealers to purchase its online advertising services were in fact inaccurate and misleading.”

For its part, an Autotrader spokesperson provided the following statement to Auto Remarketing: “At Autotrader, we’re committed to growing our clients’ businesses by connecting car buyers, sellers and owners and creating exceptional experiences. The allegations in this lawsuit are meritless, and we intend to defend ourselves vigorously.”

B&Z’s lawsuit accuses Autotrader of false advertising, fraud, negligent misrepresentation, unjust enrichment, unfair and deceptive trade practices under federal and state law, and violations of the federal Racketeer Influenced and Corrupt Organizations Act.