Texas AG files lawsuit against Vroom over alleged deceptive trade practices
Vroom is facing a lawsuit from Texas attorney general Ken Paxton, which is charging the online used-vehicle retailer with deceptive trade practices.
According to a news release distributed on Wednesday, the lawsuit against Vroom, which also sells vehicles to Texas consumers under the name Texas Direct Auto, alleges that company has misrepresented and failed to disclose significant delays in transferring clear title and obtaining vehicle registrations, “burdening thousands of consumers.”
The state also alleges that Vroom has misrepresented and failed to disclose vehicle history and condition and terms of financing and approval — all violations of the Texas Deceptive Trade Practices Consumer Protection Act.
“According to the lawsuit, Vroom has not managed its growth effectively, leading to inadequate systems and procedures that have harmed Texas consumers,” Texas attorney general office said in the news release.
The news release also indicated that over the last three years, consumers have filed more than 5,000 complaints with both the Better Business Bureau and Texas attorney general against Vroom and Texas Direct Auto.
The entire lawsuit can be viewed via this website.