DealerApp Vantage

Sep 9, 2015

N.J. app developer to pay $49K to settle fraud claims iphone.jpg A Piscataway mobile app developer settled claims that it violated the state Consumer Fraud Act by disclosing users’ personal information without their consent, state authorities said. (Associated Press) Comments TRENTON  — A Piscataway mobile app developer will pay about $49,000 to settle claims that it violated the state Consumer Fraud Act by disclosing users' personal information without their consent, state authorities said Wednesday. State authorities alleged that DealerApp Vantage, which develops customized apps for auto dealerships  to market their inventory to customers, transmitted users' personal information to the dealerships and the developer without their permission or knowledge, according to the Attorney General's Office. The dealerships were also unaware the information was being shared with DealerApp, authorities said. That information included customers' names, email addresses, phone numbers, Vehicle Identification Numbers and their cars' year, model, make and odometer reading, according to the consent order . The company has 500 dealership clients, and 38 in New Jersey. The company voluntarily cooperated with the investigation, authorities said. Jack Traina, an attorney for DealerApp, said it continues to believe it didn't violate the Consumer Fraud Act, and "the settlement was just a business decision from their perspective. " ALSO:  N.J. used car dealership accused of lying to customers about damage fined $700K The developer agreed to pay a $38,000 civil penalty and reimburse the state about $11,000 for its costs. The total payment will be roughly cut in half if the company complies with the terms of the settlement for two years. Under the settlement, DealerApp agreed to "clearly and conspicuously" disclose the what information is collects and its use of third-party analytics companies. It also 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. Samantha Marcus may be reached at  smarcus@njadvancemedia.com . Follow her on Twitter  @samanthamarcus . Find  NJ.com Politics on Facebook.