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  "documentTitle": "Carvana Co. (CVNA)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-01 00:00:00",
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  "notes": "Uses customer testimonials to illustrate the 'lock-in' effect of the purchase process.",
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      "kind": "callout",
      "text": "Carvana ties up the customer in the purchase process before giving him a chance to inspect his vehicle, making it more costly for the customer to shop elsewhere if he is ultimately unsatisfied with his car.",
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      "kind": "callout",
      "text": "Odd that even SilverRock –Ernest Garcia’s non-public auto insurance company – describes itself as a \"disruptive\" and \"innovative\" \"tech business\"...",
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      "text": "We believe that Carvana should be held to a higher standard than are other car dealers with respect to FTC Act compliance, as Carvana’s customers cannot inspect the state of a vehicle before making a purchase decision.",
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      "kind": "paragraph",
      "text": "By failing to conduct thorough inspections before selling its vehicles, and then covering any servicing conducted by third parties during the seven-day trial period through SilverRock – Ernest Garcia’s auto insurance company – the Garcias could be, in effect, shifting pre-sale inspection and reconditioning costs from Carvana to another family-owned entity, thereby inflating Carvana earnings.",
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      "kind": "paragraph",
      "text": "Section 5 of the Fair Trade Commission Act (\"FTC Act\") outlaws \"unfair or deceptive acts or practices in or affecting commerce.\" Is Carvana in violation of the FTC Act for failing to disclose the condition of its vehicles completely and accurately to customers?",
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      "kind": "title",
      "text": "A Higher Regulatory Standard?",
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