Carfax Sued For $50 Million By 120 Dealers In Massive Antitrust Suit

Illustration for article titled Carfax Sued For $50 Million By 120 Dealers In Massive Antitrust Suit

For a fee, Carfax provides history reports of used vehicles to buyers before they buy them. It's a pretty good service. But apparently it's a little too good for some. Carfax has just been hit with a $50 million lawsuit claiming they have a monopoly on vehicle history reports.


The lawsuit, first uncovered by Automotive News, alleges that Carfax provides cash or non-cash marketing support to the automakers and classified sites where it has exclusive agreements. The dealers also say that Carfax overcharges them for reports, to the tune of $899 to $1,549 per month for unlimited reports depending on the number of cars in inventory.

Other services apparently charge $16.95 per report or a flat fee for unlimited reports. Looking at the pricing listed that Carfax charges, it seems to be nearly in the same ballpark as $16.95 per report, if the dealer sells between 50 and 100 cars a month.

There are a number of other niggling points, like 37 of 40 pre-owned programs require the use of Carfax reports, as do and If you list a car on either of those sites, you can only provide a history report from Carfax.

It is expected that more dealers will join the lawsuit, with another 25 to 50 getting ready to tack their names on as well.


Andrew Daisuke

Can anyone shed some light on this?

Heard from a friend in the business, "never buy a car from a car rental agency, they're self insured, and nothing bad will ever show up on a carfax."