Over 120 auto dealerships have been linked to a lawsuit suing Carfax for damages resulting from engagement in anti-competitive practices. The suit, seeks damages of over $50 million and more dealerships are applying to be part of the suit. Carfax, the largest provider of used-vehicle history reports, is accused of exchanging cash for exclusive agreements that shutout its competitor. Exclusive agreements with AutoTrader.com and Cars.com force dealers that use those sites to only post vehicle history reports from Carfax.
The result of this case will determine whether a real emergence of a true market of used-vehicle history reports comes to fruition. Since Carfax is considerably more expensive than other used-vehicle report providers it seems likely that a ruling against Carfax is coming. Prices for reports seem somewhat arbitrary (between 800 and 1600$ a month) which doesn’t make a lot of sense because they are electronic.