CARiD lawsuits span three distinct fronts: a trademark case the company’s parent filed and lost against a smaller competitor named IDParts, a still-active trademark suit against Volkswagen over the “ID” electric vehicle line, and a Chapter 11 bankruptcy filed at the end of 2023 that wiped out shareholders and transferred the business to a new owner. Alongside the courtroom activity, the CARiD.com storefront has drawn a steady stream of consumer complaints centered on returns, fitment, and cancellation policies.
The IDParts Trademark Case CARiD’s Parent Lost
In June 2020, iD Auto, LLC, the Onyx-affiliated entity behind CARiD, sued IDParts LLC in the U.S. District Court for the District of Massachusetts. The complaint alleged that IDParts’ name and logo infringed the federally registered “CARiD” marks and a claimed standalone “iD” mark.1CourtListener. iD Auto LLC v. ID Parts LLC
IDParts counterclaimed. While the lawsuit was pending, the plaintiff’s parent company rebranded from Onyx to “PARTS iD,” and IDParts argued that this new name infringed its own mark and was adopted with full knowledge that IDParts already existed.2GovInfo. ID Auto LLC v. IDParts LLC, Court Opinion
The case went to a jury in November 2023, and the verdict was a full loss for the plaintiff. The jury found that IDParts’ name and logo did not infringe the “CARiD” or “iD” marks, that the plaintiff had failed to prove it owned a valid standalone “iD” mark, and that the plaintiff had willfully infringed IDParts’ trademark by adopting the “PARTS iD” name.3Midpage. iD Auto LLC v. ID Parts LLC On the willfulness point, the jury concluded the “PARTS iD” name was chosen after the lawsuit began, with explicit knowledge of IDParts’ existing use.2GovInfo. ID Auto LLC v. IDParts LLC, Court Opinion
The plaintiff moved for judgment as a matter of law. On July 1, 2024, Judge Allison D. Burroughs denied the motion, leaving the willful infringement finding in place.3Midpage. iD Auto LLC v. ID Parts LLC Available court records do not specify whether monetary damages or an injunction were formally entered. The company subsequently dropped the “PARTS iD” branding and now operates as iD Auto, Inc.4CARiD. About Us
The Volkswagen “ID” Trademark Suit
In August 2020, Onyx sued Volkswagen of America in the U.S. District Court for the District of New Jersey, alleging that VW’s “ID” line of electric vehicles infringed Onyx’s federally registered “iD” marks for automotive parts and services. The complaint stated that Onyx had used the “iD” mark since at least 2009, and that the U.S. Patent and Trademark Office had repeatedly denied Volkswagen trademark registrations for “ID” and related marks because of a likelihood of confusion with Onyx’s existing registrations.5Bloomberg Law. Volkswagen’s ID Electric Cars Allegedly Infringe Trademarks
The case was terminated in April 2021 but reopened in October 2024, reassigned to Judge Zahid N. Quraishi. As of mid-2026 the matter remains active, with June 2026 docket activity showing the parties filing proposed findings of fact and conclusions of law along with a motion to seal, suggesting the case has progressed to or through a bench trial.6PACER Monitor. Onyx Enterprises v. Volkswagen Group of America
Chapter 11 Bankruptcy and the End of PARTS iD Shareholders
By late 2023, the company’s finances had collapsed. PARTS iD received notices of non-compliance from the NYSE American in November 2023 for failing to file its quarterly report on time.7Investing.com. PARTS iD Inc. Stock Overview On December 26, 2023, the company filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, reporting $55 million in debts against $18.7 million in assets.8Digital Commerce 360. Parts iD Files for Bankruptcy The NYSE suspended trading the same day and began delisting proceedings; the company did not appeal.9Intercontinental Exchange. NYSE American to Commence Delisting Proceedings Against PARTS iD
CEO Lev Peker attributed the filing to inflation, supply chain disruptions, and weak consumer confidence.8Digital Commerce 360. Parts iD Files for Bankruptcy The bankruptcy was prepackaged, with creditor support lined up before filing. Investment firm Fifth Star, Inc. served as plan sponsor, purchasing $26 million in preferred equity to fund distributions to creditors and continued operations.10Sidley Austin. Sidley Represents Fifth Star in PARTS iD Chapter 11 Restructuring
The plan was confirmed on February 5, 2024, and became effective on February 22, 2024, just 47 days after filing. The cases closed on June 4, 2024.11Kroll. PARTS iD Case Information The NYSE told shareholders it was “unlikely” they would receive any payment or distribution from the proceedings.9Intercontinental Exchange. NYSE American to Commence Delisting Proceedings Against PARTS iD The reorganized business emerged under Fifth Star’s ownership and now operates as iD Auto, Inc.4CARiD. About Us
Consumer Complaints Against CARiD
The CARiD.com storefront has continued operating through every corporate change, and complaints have continued to accumulate. The Better Business Bureau lists CARiD with a “C” rating and no BBB accreditation. Over the three years ending in mid-2026, customers filed 160 complaints, with 57 closed in the most recent 12-month period.12BBB. CARiD BBB Business Profile
The recurring disputes fall into a few patterns.13BBB. CARiD BBB Complaints
- Fitment: Parts sold as “direct-fit” or “compatible” that require professional modification or don’t fit at all. CARiD’s standard response is that aftermarket and fiberglass parts require body-shop fabrication, and that returns are voided once a product has been modified or painted.
- Returns: Items must be returned in new, unused condition within 30 days. Customers who install a part to test fitment and then find it doesn’t work often can’t return it. When returns are accepted, original and return shipping costs are deducted from the refund unless the error was CARiD’s.
- Shipping: Delays, wrong-address deliveries, and disputes over return freight. CARiD treats address-change requests as non-binding.
- Cancellations: A 30-minute cancellation window applies. Customers report being unable to cancel orders even when the request comes before the item ships.
When complaints reach the BBB, CARiD’s typical response is a partial settlement offer, often $50 to $100, while maintaining that its posted policies applied and that the customer failed to follow installation or inspection protocols. The company disclaims responsibility for labor costs, lost time, and other expenses tied to a defective or incompatible part.13BBB. CARiD BBB Complaints Those disclaimers are written into the site’s terms, which state that CARiD is not liable for labor costs, loss of vehicle use, or ancillary expenses.14CARiD. Terms and Conditions
Which Entity Is CARiD Now
Anyone dealing with the company today, whether as a customer, creditor, or prospective plaintiff, is dealing with iD Auto, Inc., the post-bankruptcy entity the BBB lists as incorporated on February 23, 2024, consistent with emergence from Chapter 11.12BBB. CARiD BBB Business Profile A separate BBB profile for the now-defunct “PARTS iD, LLC” carries an “out of business” alert, reflecting the pre-bankruptcy corporate structure.15BBB. PARTS iD LLC BBB Business Profile Prepetition claims against PARTS iD were handled inside the bankruptcy; ongoing consumer disputes run against the reorganized iD Auto, Inc.