The California New Car Dealers Association filed a lawsuit Wednesday against TrueCar, alleging that the shopping site is not in compliance with certain sections of the California Vehicle Code.
New-vehicle sales in California improved for the 14th consecutive quarter in the opening quarter of 2014, with new-vehicle registration increasing 5.4% from a year ago, according to the state association.
Car dealers tend to stick together when it comes to opposing any new business that poses a threat to the industry’s core foundation. But an FTC investigation has auto retailers questioning what the limits are when it comes to standing their ground.
According to the San Francisco Chronicle , the California New Car Dealers Association is seeking an investigation into Tesla Motors' advertising practices.
