Auctioned Auto Dealer Dashub ‘Falsifies Winning Bid Prices,’ Class Action Alleges

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Dashub, LLC is in the crosshairs of a proposed class action lawsuit filed in New York by a consumer who claims the company brings in “illicit profits” by falsifying the winning bid prices on vehicles it purchases at auction.

According to the complaint, Dashub is a dealer that re-sells cars purchased at auction. The suit explains Dashub will receive a deposit from a consumer and then bid on and buy a used vehicle before selling the car back to the consumer for a fee. The plaintiff claims, however, that Dashub represents to its customers that it paid a sizably higher price at auction than it actually paid. After customers are charged this inflated price, the suit alleges, Dashub pockets the difference. 

“Not only does [the defendant] misrepresent the vehicle price to its customers, it misleadingly creates the appearance that [Dashub] has provided the customers with substantial savings,” the suit reads.

Dashub’s website, the lawsuit says, notes that a customer’s bid is the “maximum price that you are willing to pay for the vehicle itself at auction.” After a car has been won, the case continues, the final sale price will include a customer’s winning bid amount, shipping costs and additional fees. The suit alleges, however, that Dashub, does not calculate a customer’s final sale price using the true winning bid amount.

The case later points out that once Dashub buys a vehicle at auction, the listing disappears from its website. Consumers are never able to see the actual winning bid amount paid at auction by the defendant, the suit claims.