Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES NEWS: App developer settles fraud claims for $49K, (Sep 10, 2015)

By Jody Coultas, J.D.

Mobile app developer DealerApp Vantage, LLC agreed to settle claims that it violated the New Jersey Consumer Fraud Act by disclosing users’ personal information without their consent, the New Jersey Attorney General announced on September 9. If approved, judgment will be entered in the amount of nearly $49,000, which would be partially suspended upon the completion of certain undertakings.

DealerApp develops mobile device apps for hundreds of motor vehicle dealerships to market their inventory to customers. The New Jersey AG’s Office alleged that DealerApp transmitted users’ personal information—including names, email addresses, phone numbers, Vehicle Identification Numbers and their cars’ year, model, make and odometer reading—to the dealerships and the developer without their permission or knowledge. The dealerships were unaware the information was being shared with DealerApp.

According to the consent order, DealerApp agreed to pay a $38,000 civil penalty and reimburse the state about $11,000 for its costs. Given DealerApp’s compliance with the investigation and candor towards the New Jersey AG’s Office, however, $26,000 will be suspended and automatically vacated within two years of the effective date, provided DealerApp meets certain commitments under the consent order.

DealerApp also agreed to “clearly and conspicuously” disclose what information it collects and its use of third-party analytics companies, and agreed not to sell personal information to anyone other than the intended dealership without users’ consent.

“This settlement will assure that the alleged violations of consumer privacy committed by DealerApp will no longer occur and will send a message to companies that violate their customers’ privacy that such conduct is unacceptable,” Acting Attorney General John J. Hoffman said in a statement.

Attorneys: Jack A. Traina (Traina & Traina) for DealerApp Vantage, LLC. John J. Hoffman, Office of the Attorney General.

Companies: DealerApp Vantage, LLC

News: StateUnfairTradePractices NewJerseyNews