TrueCar Launches National Compliance Campaign and Pro-Industry Product Changes
SANTA MONICA, Calif., Jan. 16, 2012 /PRNewswire/ — TrueCar, Inc., which is devoted to bringing innovation to the car buying process, today announced a nationwide, multi-faceted strategy to tackle regulatory compliance issues and demonstrate its commitment to state regulators, state dealer associations and to better serve its dealer partners. Among other changes that are taking place nationally, TrueCar implemented a new flat fee-billing model in the Commonwealth of Virginia, which has been OK with flat fee billing since January 2001. This change marks a significant step in TrueCar’s ongoing compliance strategy. TrueCar’s proactive modifications will include introducing a new billing model in certain states, adjusting advertising presented through the TrueCar website, establishing a TrueCar National Dealer Council, and launching a new consumer membership program.
TrueCar announced this initiative as part of a “listening tour” by senior company executives that included visits with key constituents including dealer groups, dealer associations and manufacturers across the nation. “These meetings have been incredibly constructive. We are in the business of innovation. As such we have to embrace change as part of what we do,” said Scott Painter, Founder and CEO of TrueCar, Inc. “The feedback we have received, both good and bad, will enable us to better serve our dealer partners, and the industry overall. The changes announced in Virginia are a great signal that collaboration with state regulators can result in a constructive outcome for consumers and dealers.”
Compliance is an essential element of TrueCar’s mission. TrueCar has been engaged in discussions with regulators in several states regarding its fee structure and/or advertising issues. TrueCar is responding immediately to any state concerns as part of a comprehensive national strategy, with a goal of achieving 100 percent national compliance. In the meantime, TrueCar has voluntarily suspended service in Louisiana, Colorado, Nebraska and Oklahoma in order to make certain changes to improve TrueCar’s service and to protect its dealer partners. The company expects to have certain changes implemented in January. “TrueCar’s dealer partners are central to our success and ensuring compliance is the foundation of TrueCar’s strategic commitment to dealers. We will not put our dealer partners in jeopardy,” said Stewart Easterby, Executive Vice President of TrueCar, Inc.
Subscription Billing Model To Be Rolled Out Nationally
Most states have some version of either bird-dogging or brokering laws on the books. TrueCar is taking a proactive national approach to this business model issue, shifting to a subscription-based billing model in those states where there is potentially an issue. For example, in California the company will be voluntarily and immediately commencing work on implementing its subscription-based model.
Over the long term, TrueCar will continue to work with state regulators in an attempt to identify ways to update existing laws and regulations to take into account innovation made possible by the digital age. These innovations include the ability to help dealers achieve accurate performance metrics for their marketing spend and 100 percent visibility into their partners’ performance.
Dealer Management System (DMS) Data Practices
TrueCar is committed to maintaining the highest data standards including limiting the collection of information. TrueCar does not sell dealer DMS data and does not use dealer DMS data for any purpose other than matching vehicle sales to customer leads and monitoring performance to enhance TrueCar’s service to its dealer partners. In addition to only collecting information with dealers’ permission, TrueCar is committed to working with dealers to enhance dealers’ control over access to and use of DMS data, including limiting the fields of data that are received from DMS to those fields necessary to perform the sales matching function.
Changes to Address Advertising Issues
TrueCar will implement important changes to the website to address certain advertising issues. As part of its commitment to its dealer partners, TrueCar will also develop new messages that focus on important dealer attributes, like proximity, selection and service rather than simply price. “Bottom line is we’re out listening and talking to the industry. What we heard is that dealers feel our ads focused on price and did not tell a positive enough story about our dealer partners. We’ve listened to their concerns and are making adjustments. Qualitative considerations that drive purchase other than price will have greater prominence in future ads.” said Stephen Hansen, President of TrueCar.
National Dealer Council/Dealer Initiatives
TrueCar is also announcing several changes to take into account feedback and better serve its dealer partners:
- Effective immediately TrueCar will be enhancing its TrueCar Price Report to enable dealers to more effectively market themselves, by providing consumers and dealers a much more balanced view of the market.
- TrueCar will introduce its first-ever National Dealer Council in the next few weeks. The Council will serve as an important venue for TrueCar to hear dealer feedback – good and bad – on TrueCar’s products, processes and policies.
- TrueCar will enable statistical and other tools to identify dealers with extreme price outliers. TrueCar recognizes that price outliers may interfere with a sustainable dealer/consumer ecosystem and will work to alleviate these issues and include important qualitative factors in the decision process.
- TrueCar will be making product, policy, and process changes throughout the entire business to enhance dealer confidence in TrueCar.
Consumer Membership Program
TrueCar remains committed to innovating to ensure higher lead quality for dealers and enhanced brand protection for OEMs. Based on OEM feedback, TrueCar will introduce a new consumer membership program, which TrueCar believes will substantially alleviate the concern. With this change, dealer partners can expect even higher quality introductions from TrueCar. In the end, consumers and dealers benefit.
TrueCar, Inc. is an automotive solutions provider focused on changing how cars are sold by providing a significantly better customer experience while helping qualified dealer partners to gain incremental market share and reduce costs. TrueCar is a visual publisher of new car transaction data. TrueCar price reports help both dealers and consumers to agree on the parameters of a fair deal by providing an accurate, comprehensive and simple understanding of what others actually paid recently for a similar car both locally and nationally. TrueCar works with a national network of dealers that provide up-front, no-haggle, competitive pricing to assist some of the nation’s largest and most well respected membership and service organizations to meet the auto buying needs of their members and customers. Collectively these audiences represent over 1M in-market customers each month. TrueCar is headquartered in Santa Monica, CA and has offices in San Francisco, CA and Austin, TX. With 131 percent annual growth since 2006, TrueCar has helped dealers sell over 400,000 vehicles and is developing a suite of products and services centered on radical clarity as a result of comprehensively analyzing market data and information.
This press release and the information contained herein is for noncommercial use on “as-is, as available” basis and may be used for informational purposes only. TrueCar makes no representations or warranties, express or implied, with respect to the information contained in this press release and the results of the use of such information, including but not limited to implied warranty of merchantability, fitness for a particular purpose and non-infringement. The information contained in this press release may include technical inaccuracies or typographical errors. Neither TrueCar nor any of its parents, subsidiaries, affiliates or respective partners, officers, or directors, employees or agents shall be held liable for any damages, whether direct, incidental, indirect, special or consequential, including without limitation lost revenues or lost profits, arising from or in connection with your use or reliance on the information presented in this press release.
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SOURCE TrueCar, Inc.