WASHINGTON, D.C. — The Federal Trade Commission (FTC) has announced it will distribute over $934,000 in refunds to more than 20,000 consumers harmed by known shipment delays and deceptive practices at online car dealer Vroom. These refunds stem from a settlement reached earlier this year in response to multiple violations of federal law.
The FTC’s investigation revealed that Vroom misled consumers by claiming their vehicles were thoroughly inspected before being sold, a claim proven inaccurate in many cases. Additionally, the company failed to secure customer approval for shipping delays or issue timely refunds when vehicles were not delivered as promised. Vroom was also found to have violated the Used Car Rule by providing incomplete or late Buyers Guides and omitting necessary warranty details.
To address these violations, Vroom agreed to a settlement in July 2024, which also imposed strict requirements for improved transparency going forward. The company is now prohibited from misrepresenting vehicle conditions or delivery timelines and must ensure compliance with legal disclosure requirements in future transactions.
Refunds are being distributed via checks to 20,361 consumers. Recipients are advised to cash their checks within 90 days to ensure timely compensation.
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