Vroom will pay $1 million as part of a settlement with the Federal Trade Commission announced last week.
The FTC imposed the penalty after its filing alleging Vroom had misrepresented its examination of vehicles before listing them and failed to obtain consumers’ consent for delivery delays or provide prompt refunds.
““Vroom promised the fast deliveries of thoroughly inspected cars, but sped right past compliance,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection in a press release. “Online car dealers and other Internet sellers must provide required disclosures just like any brick-and-mortar businesses that comply with the law.”
The FTC alleged Vroom did not follow regulations in the Used Car Rule, the Pre-Sale Availability Rule and the Mail, Internet and Telephone Order Rule (MITOR).
Vroom announced in January that it was discontinuing its ecommerce operations and ending its used vehicle dealership business. Vroom owns United Auto Credit Corporation and CarStory and will continue to operate the businesses.
