TrueCar polishing edges off business model to comply with state regulations

TrueCar has attracted much unwanted attention recently, drawing the ire of Honda and torquing off regulators in several states. In response, the company has announced a series of changes to its business model, designed to address the legality of its service, according to a report in Automotive News.

The biggest change is that dealers in some states will now have to subscribe to the lead service rather than paying a per-vehicle fee for sales closed from a TrueCar referral. Consumers will now have to sign up with TrueCar, providing contact information in the process. Additionally, TrueCar will drop the term "invoice" when describing the deals it offers.

While these changes are expected to mitigate TrueCar's biggest problems, the company also says it will be making its service more dealer-friendly, according to AN. One of the contentious aspects of the TrueCar business model for some dealers has been the requirement that TrueCar have access to the dealer's computers, such that the company can mine sales data. TrueCar says it will be limiting this in the future, along with establishing a national dealer council to procure feedback from its partners.