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Case ID: 3665 | Automotive | 09/07/2004
A nationwide class action has been filed against Carfax, Inc., on behalf of consumers who used the company's service from October 1998 to the present. The action alleges that the company misleads customers into believing that its car title searches are nationwide, in violation of the Ohio Sales Practices Act. The suit seeks unspecified compensatory and punitive damages.
The suit alleges that Carfax engages in unfair, misleading and deceptive sales practices in connection with the automobile database services that it offers to the public. Carfax offers paid access to its database of car title information, and advertises that: • “Your best protection against buying used cars with costly hidden problems. CARFAX searches its nationwide database and provides a detailed vehicle history report in seconds.” • “CARFAX Vehicle History Reports reveal the truth about used cars, CARFAX provides important background information to unearth hidden problems in a vehicle's past that may affect its safety and resale value.” The lawsuit alleges that the service is little more than a nationwide scheme to take customers’ money, since it only provides information from the record systems of fewer than 27 states. Carfax advertises that it conducts accident report searches for used vehicles on a nationwide basis in order to determine for consumers whether a specific used car has been involved in a collision. The company allegedly fails to disclose to consumers that it does not have the ability to access and search public accident records in over 23 states. A similar lawsuit has now been filed in state court in Tennessee. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Automotive Cases of Interest The parties have reached a tentative $1.5 million settlement of a class action filed against automotive parts manufacturer Federal-Mogul Corporation (OTCBB: FDMLQ, formerly NYSE: FMO) and certain of its officers and directors by stockholders who purchased the company's common stock between October 22, 1998, and May 25, 2000. To recover under the settlement, a completed proof of claim postmarked no later than January 9, 2004, must be mailed to the claims administrator. Two Michigan men filed a lawsuit against a maker of tires for recreational vehicles they say are defective and pose a safety risk. Jeffrey Hunsaker, of Byron Center, and Dennis Drooger, of Holland, filed the suit against Carlisle Tire & Wheel Co. last January in Kalamazoo. State Farm, the nation's largest auto insurer, continued to resell thousands of vehicles nationwide without disclosing they had been in wrecks even though the company had agreed years earlier to stop the practice. The company announced it would pay $40 million to owners of thousands of totaled vehicles that State Farm had sold without state salvage titles, as required by law. The company says the practice was a mistake. A U.S. district judge recently certified a national class-action lawsuit brought by a Detroit businessman against Illinois-based Caterpillar Inc. over diesel engines the company makes for large yachts. The class has been certified in an action filed against General Motors Corporation on behalf of all persons who purchased a new Chevrolet, GMC, Cadillac, Oldsmobile, Buick, or Pontiac vehicle at retail in Pennsylvania from a franchised GM dealer between 1988 and 1999. The action alleges that GM added 1% of the manufacturer's suggested retail price to the invoice of each new vehicle it sold to its dealers, in violation of the Pennsylvania Board of Vehicles Act. A national class action has been filed in Utah against German automaker Volkswagen of America, Inc. The action is brought in behalf of all U.S. residents who have purchased or leased 2002-2003 Volkswagen Jetta automobiles with factory installed heated seats. The Jetta owners allege that the seats are defective and overheat, causing property damage and bodily harm. The action only seeks to establish a fund to repair and or replace the defective seats, it does not seek any damages for personal injury. The action is brought under the theory of strict liability, claiming the seats were a defective design as well as claims for breach of implied and express warranties, negligence and a failure to warn Jetta drivers of the risk of harm and property damage. |
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