AUSTIN, Texas — On Monday, the Texas Department of Motor Vehicles Enforcement Division determined that CarGurus’ online advertisements are now in compliance with state law — after the vehicle-shopping site revised its practices.

In April, the Texas DMV issued a letter to CarGurus advising that the way it lists used-car prices on its website violated a law prohibiting savings claims or discount offers in used-vehicle advertisements. CarGurus was given 30 days to remove the content before the department said it would subject dealers with listings on the site to fines of up to $10,000 each day a violation occurs. The department later pulled back on its threat of enforcement action against dealers after a meeting with CarGurus officials.

As a result of that discussion, on May 8 — 15 days after the original notice was issued — CarGurus submitted revisions to the department. “The revisions included removal of the savings data connected to the historical price information and the Instant Market value, as well as disclaimer language added to the Instant Market Value section,” according to a letter issued by the DMV on Monday.

“The department reviewed the revised content and has determined that the Texas used motor vehicle advertisements appearing on CarGurus are now in compliance with the department rule,” the letter read, in part. “With this decision, the case file is being closed.”


About the author