The New York City Department of Consumer and Worker Protection has filed a lawsuit against CarGurus, charging the vehicle listings platform with deceiving consumers by advertising vehicles as “Good Deals” or “Great Deals” while hiding hundreds or thousands of dollars in mandatory fees, down payments and trade-in requirements. Nick Zulovich of Auto Remarketing was first to report the lawsuit.

The complaint, filed in New York State Supreme Court, alleges CarGurus has violated the New York City Consumer Protection Law more than 2,000 times. DCWP also alleges the company’s AI chatbot compounds the deception by generating additional lists of supposed deals. The agency cited a June 2026 listing in which a 2018 Honda was rated a “Great Deal” at $2,212 below market value; actual mandatory fees made the real price $1,473 above market value, according to the complaint.

“New Yorkers should be able to trust that a ‘Great Deal’ is actually a great deal,” writes DCWP Commissioner Samuel Levine. “Our lawsuit seeks to stop bait-and-switch pricing, eliminate hidden fees, and ensure customers aren’t getting fleeced when making one of the biggest purchases of their lives.”

“We are deeply disappointed that the DCWP is bringing claims against CarGurus,” CarGurus CEO Jason Trevisan tells Auto Remarketing. “Their claims don’t reflect the facts: Since our founding in 2006, CarGurus has pioneered used car price transparency for consumers through tools and features that have since become industry standards.” Trevisan says the company “will defend the company vigorously.”

Levine’s agency has pursued deceptive pricing cases against individual dealerships as well; in June, Honda of the Bronx agreed to pay $129,999 to settle similar charges.

Read more at NYC.gov