Texas files suit against online car dealer Vroom for deceptive practices

AUSTIN (CBSDFW.COM) - Texas Attorney General Ken Paxton filed a lawsuit against online car dealer Vroom on April 20, 2022, alleging they used deceptive trade practices to sell vehicles to customers.

Vroom Automotive LLC and Vroom Inc, which also uses the name Texas Direct Auto, allegedly misrepresented and failed to disclose significant delays in transferring clear title and obtaining vehicle registrations. Paxton's lawsuit also alleges that Vroom misrepresented and failed to disclose vehicle history, vehicle condition, and terms of financing and approval, which are all violations of the Texas Deceptive Trade Practices Consumer Protection Act.

Yesterday, a CBS 11 I-Team Investigation found that more than 4,700 formal complaints have been filed by Vroom customers with the Better Business Bureau and the Texas Department of Motor Vehicles has issued the Houston-based company more than 80 violations since 2019 – leading to 59 cease and desist orders.

According to Paxton, over 5,000 complaints were filed with the BBB and Office of the Attorney General against Vroom and Texas Direct Auto.

The company also does business in Arizona and Florida. The Florida Department of Highway Safety and Motor Vehicles recently issued Vroom a $47,000 fine for 47 counts of not transferring a vehicle title in accordance with Florida law, and Arizona officials said they are looking into similar complaints.