Drivers across California are complaining about a website that looks like it is related to the state’s Department of Motor Vehicles and offers DMV services. Only thing is, it’s not the DMV, and it’s been charging customers ridiculous fees for the services it offers.
Los Angeles’ ABC 7 consumer investigation arm 7 On Your Side reports hundreds of drivers across the state have put in complaints against a website called NeedTags.com. At first glance, the site looks like it could have something to do with the DMV; it even offers online DMV services like vehicle registration renewal, title transfer and non-operational status applications.
The problem for these customers lies both in the appearance of the site and the fees added on to the services it offers. One San Jose resident who ABC 7 spoke with used NeedTags.com to renew his registration and was hit with a $72 fee when he went to check out.
It has all the appearance of the DMV,” said Allyn Peterson of San Jose. Peterson went to the DMV website to renew his car registration. Or so he thought. “It’s like, what is this?” he said. His DMV registration fee was $231. So why was he charged $303? “We feel we’re being, if you will, ripped off,” Peterson said. It turns out he’d mistakenly clicked on a third-party website: NeedTags.com, which provides DMV services — but tacks on extra fees at checkout.
Realizing his mistake, Peterson went to cancel his order. NeedTags.com hit him with a legal threat before he could cancel. “’If you dispute this transaction we will take legal action immediately,’ which is not what I would expect from a reputable company,” he told ABC 7.
What’s worse, Peterson and other drivers have found that NeedTags.com is an authorized DMV partner. A disclaimer at top of the homepage says as much and also tells customers that, in a roundabout way, if they don’t want to be charged extra fees they can go to the DMV instead.
NeedTags has been officially licensed by the California Department of Motor Vehicles to provide DMV services on their behalf. NeedTags is not owned or operated by any government agency and charges fees for value-add DMV services pursuant to CVC Section 1685. Standard service may be obtained from the DMV at no cost.
Despite this, NeedTags.com and its owners know exactly what they’re doing. From the webpage design to the site appearing at the very top of Google search results, it’s all designed to draw people in. Along with hiding just how much fees it charges and customers not being aware of those fees until they checkout, the site could be a violation of state consumer laws, consumer advocates tell ABC 7.
Owner of NeedTags.com Eddy Asmerian told ABC 7 his site is “committed to transparency,” while a statement from the DMV to ABC 7 said NeedTags is not the DMV and in spite of being a partner, it “urges motorists not to use NeedTags — but go directly to the DMV website.”
