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article image120 dealers sue Carfax for $50 million for antitrust violations

By Owen Weldon     Apr 26, 2013 in Technology
Car dealers from across the country have decided to sue Carfax. Inc. in a federal court in New York, over allegations that the company has violated antitrust laws.
According to Chron, Carfax, which provides people with detailed vehicle history reports, is being sued for $50 million. The lawsuit alleges that Carfax's exclusive deals with car manufacturers as well as online sites have ended up creating a monopoly.
Car dealers pay a monthly fee of between $900 to $1,549 for the vehicle history reports, or $16.95 per report, according to the lawsuit. The suit alleges that the prices are higher than the prices that companies that offer similar services charge.
According to Automotive, the National Vehicle Title Information System has certified at least 10 different companies that do the same thing that Carfax does, but not many people have heard of them.
According to Jalopnik, sites such as Cars.com and Autotrader.com allows sellers to sell cars on their sites by listing them for sale, but they have to provide vehicle history report from Carfax.
More dealers are expected to join the lawsuit, with around 50 dealers getting ready to add their names to the lawsuit.
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