TrueCar appears to have regained its footing after a backlash from dealers that hit the business in late 2011 and early 2012, causing regulators in several states to take a look at the company and prompting significant changes. The Wall Street Journal detailed the fracas, saying TrueCar's "disruptive" service "nearly drove it out of business."
In January 2012, after a "listening tour" with dealer groups and manufacturers, the company 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."
TrueCar substantially revised its business model, including the website experience and dealer billing methods in certain states, to ensure compliance with all applicable laws, a spokesman said via e-mail. There are no known open regulatory issues or inquiries from regulators, he said.
TrueCar last year also formed a national dealer council, a group of auto industry veterans and dealers, including those that don't participate on the platform, to work with the company. The company said it would preview major policy, product and process changes with the group. It also hired a vice president for dealer development to build and strengthen dealer relationships.
