Vroom agrees to proposed FTC settlement over car sales claims
The FTC said Vroom misled buyers about inspections, shipping times and required disclosures. The company agreed to a proposed settlement that includes a $1 million payment to consumers.
Vroom agreed to a proposed settlement with the Federal Trade Commission that includes a $1 million payment to consumers, according to a July 16 report from Consumer Finance Monitor.
The proposed deal resolves FTC allegations that the former used-car sales website misrepresented vehicle inspections, missed promised delivery windows and failed to meet disclosure requirements tied to car sales.
What the FTC alleged
According to the report, the FTC said Vroom told customers that each vehicle had been thoroughly examined before being listed for sale, but that the vehicles had not received such inspections.
The FTC also alleged violations of Section 5(a) of the FTC Act, which bars unfair or deceptive acts or practices. The report said the agency cited Vroom’s handling of shipping promises, including advertisements that said vehicles typically arrived within 10 to 14 days.
In numerous cases, the FTC alleged, orders were not shipped within that window. The report said Vroom did not offer consumers the chance to consent to delays or cancel orders.
Background and context
The report described Vroom as a former used-car sales website that halted vehicle sales in January 2024.
It also said the FTC alleged Vroom failed to prepare, fill in or display a Buyer’s Guide for each vehicle offered for sale, as required by the Commission’s Used Car Rule. The agency also alleged the company failed to display warranty text in close proximity to the vehicle, in violation of the Commission’s Pre-Sale Availability Rule.
The Consumer Finance Monitor report said the settlement indicates the FTC will keep reviewing dealer sales practices under existing authority, despite delays tied to the CARS Rule litigation and stay.
What officials said
The report attributes the allegations to the FTC and says Vroom agreed to the proposed settlement. It did not include direct statements from either side beyond those summary points.
What happens next
The report says the settlement is proposed, which means it still requires the next procedural steps before it is final.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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