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530 used car dealers join in antitrust suit against Carfax Inc

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A total of 530 auto dealers (including 54 from Long Island, Queens and Brooklyn) are now involved in a lawsuit against Carfax Inc., claiming that the company, which provides vehicle history reports is “violating, the Sherman and Clayton Antitrust Acts by unfairly excluding competition through it’s exclusive alliances with internet car buying sites Cars.com and Autotrader.com, as well as with most carmakers’ certified pre-owned auto programs.”

Vehicle history reports (VHRs) are required for almost all certified pre-owned sales programs.

As a result, the plaintiff’s contend that the Virginia based company’s “ virtual monopoly” forces them to pay higher fees for reports given to prospective buyers, According to Court News Service this runs from $10,000 per year for small used car dealers, to tens of thousands for larger dealerships.

In the meantime, the firm of Bellavia, Blatt, Andron, and Crossett of Mineola, NY, which originally filed the lawsuit in federal district court in Manhattan last May on behalf of 130 dealers, said they expect even more dealers to join in the action, which is seeking $250 million in damages from Carfax.

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