CarFax Hit With $50 Million Lawsuit, Because It Controls The Used Car Market

The owners of 120 auto dealerships have filed a federal lawsuit against Carfax Inc., alleging that the vehicle history reporting company engages in anti-competitive practices and violates antitrust laws.

The suit, filed Tuesday in U.S. District Court for the Southern District of New York, seeks damages of more than $50 million. It also alleges that Carfax, through exclusive agreements with auto companies and popular classified auto Web sites, is "monopolist in the sale of vehicle history reports."

Larry Gamache, a Carfax spokesman, said the company is "not able to comment" on the suit. Carfax is a unit of R. L. Polk & Co.

topneuro - 4/25/2013 4:58:48 PM

+3 Boost

Contrary to public belief not all automobile repairs or MVA’s leave a paper trail that Carfax can trail. A significant number of vehicle with “Clean” CarFax records have horror stories. For any used vehicle or “CPO” nothing beats taking a test drive, getting dirty and take a good look at the engine and undercarriage with your good friend personal mechanic if you have one.

iamdabest1 - 4/25/2013 9:32:21 PM

+1 Boost

carfax is definitely not 100% reliable... most people i know just fix damages up to 2-3k and avoid their insurance going up.