SANTA MONICA, Calif. and
SACRAMENTO, Calif., Dec. 14, 2017 /PRNewswire/ -- TrueCar, Inc.
(NASDAQ: TRUE), and the California New Car Dealers Association
(CNCDA) are pleased to announce that, in resolution of the
litigation between the parties, TrueCar has agreed to transition
its billing model in the State of
California from a pay-per-sale model with a cap to a
flat-fee subscription billing model by January 1, 2019, and also to double the indemnity
that it provides to California
dealers who participate on the TrueCar program. Unlike
TrueCar's current subscription billing model in California, the flat-fee subscription billing
model will not include a "sales guarantee" as a retroactive
adjustment mechanism.
"This litigation afforded us the opportunity to thoroughly
examine TrueCar's user experience and business practices," said
Brian Maas, President of CNCDA. "The
agreement reached with TrueCar, together with the other adjustments
to its business model made by TrueCar after CNCDA initiated this
litigation, satisfactorily resolve our previously expressed
concerns regarding the existing TrueCar business model, which is
currently a pay-per-sale model with a cap. We also believe that
through the doubling of the indemnity TrueCar offers to
participating California dealers,
we have procured another valuable benefit for our members through
this litigation. We are pleased that we are now able to put
this matter behind us."
"TrueCar is pleased that the litigation has been resolved to the
parties' mutual satisfaction, and we look forward to continuing to
serve our dealer customers in the State
of California," said Chip
Perry, President and Chief Executive Officer of TrueCar.
About CNCDA
The California New Car Dealers Association is the country's
largest state association of franchised new car and truck dealers
representing nearly 1,200 dealer members.
About TrueCar
TrueCar, Inc. (NASDAQ: TRUE) is a digital automotive marketplace
that provides comprehensive pricing transparency about what other
people paid for their cars and enables consumers to engage with
TrueCar Certified Dealers who are committed to providing a superior
purchase experience. TrueCar operates its own branded
site and its nationwide network of more than 15,000 Certified
Dealers also powers car-buying programs for some of the
largest U.S. membership and service organizations,
including USAA, AARP, American
Express, AAA and Sam's Club. Over one half of all
new car buyers engage with the TrueCar network during
their purchasing process. TrueCar is headquartered
in Santa Monica, California,
with offices in San Francisco and Austin,
Texas. For more information, go
to www.truecar.com. Follow us
on Facebook or Twitter. TrueCar media
line: +1-844-469-8442 (US toll-free) |
email: pressinquiries@truecar.com
Contact
pressinquiries@truecar.com
Alison Sternberg
424.258.8771
asternberg@truecar.com
Contact
Jenny Dudikoff
916.441.2599
jdudikoff@cncda.org
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SOURCE Truecar, Inc.