True or False, TrueCar? Dealers sue True Car, Consumer’s Friend Wants Stories!

Is this true, or are dealers suing because it is? Online car buying site TrueCar Inc. was jus sued for $250 million Monday in New York federal court by 117 automotive dealerships, claiming the company misleads consumers into believing it can streamline the process of purchasing a car, which the dealerships say hurts their sales. Yeah, that’s the point, right? Consumer’s Friend will keep track of this, but would LOVE to hear consumer stories of their experience with using TrueCar
The lawsuit says TrueCar engages in false advertising and deceptive business practices when it promises customers they will save money through the online service that provides data on vehicle pricing. The allegedly misleading claims of price transparency have lost each of the plaintiff dealerships anywhere from 25 to 85 sales a year, which can amount to more than $1 million in lost revenue, the complaint said.
“TrueCar advertises that their service provides a ‘no haggle experience’ with statements like ‘no negotiation’ and ‘no surprises,’” lead attorney Leonard Bellavia of Bellavia Blatt & Crossett said. “Yet the buying experience is anything but that, as it sets consumers up for disappointment. Our clients have invested hundreds of millions of dollars to enhance the customer experience, which TrueCar has managed to undermine.”
According to the complaint, TrueCar falsely claims that consumers can use its website to buy a car with “no haggling” and “no negotiation,” and can use the site to “remove surprises at the dealership.” But, the suit contends, TrueCar merely acts as a referral service that provides its affiliated dealerships with customer leads and contact information. What do you think?