TrueCar Beats False Ad Suit After Dealers Fail to Show Harm (1)

Online car pricing company TrueCar Inc. defeated false advertising claims because 108 car dealerships failed to show they were hurt by the company’s actions, a federal court ruled.

The U.S. District Court for the Southern District of New York found evidence that TrueCar willfully violated the Lanham Act governing trademark and false advertising law. But the dealers needed to present evidence of harm because they’re not direct competitors with TrueCar, the court said.

The dealers accused TrueCar of claiming to offer haggle-free guaranteed low prices when it actually just referred customers to affiliated dealers.

The July 12 decision shows that ...