California drivers are paying up to $90 in unnecessary fees through a state-authorized DMV partner website that mimics official government services, and when customers dispute the charges, the company threatens them with legal action.
How the Scheme Works
NeedTags.com, officially listed as a DMV business partner on California’s government website, appears as a sponsored result on Google searches for DMV services. The company charges roughly $90 more than what drivers would pay directly through the official state DMV website for the same vehicle registration services. Google transparency data reveals Continental Green Inc. pays for 73 different versions of these ads, which sometimes display a warning stating they are not government websites.
San Jose resident Allyn Peterson challenged the charges through his credit card company and lost. He questions why California officially sanctions the practice. Allen Jensen tearfully told ABC 7 he has never been in legal trouble and cannot understand why his own state enables these inflated fees. An 84-year-old Santa Cruz woman, Manuella Raquelle, said she missed the fine print and accidentally submitted payment. Her distress email to the company went unanswered.
Legal Advocates Slam Business Partnership
Robert Herrell of the Consumer Federation of California criticized the company’s status as an official DMV partner. He argues the partnership creates a false impression that customers pay identical rates to the official DMV website. Herrell explained that consumers sometimes pay hundreds of dollars beyond standard DMV fees and strongly recommends using only the official government website for all vehicle registration needs.
California Assemblymember Matt Haney addressed the issue during a Transportation Committee hearing last year, noting that consumers unknowingly access DMV services through online vendors charging huge markups. Lawmakers sponsored legislation to cap third-party fees, but the bill has not passed. The state DMV told ABC 7 it encourages customers to use the official website and expects business partners to maintain transparent fee structures and follow the law.
What This Means
Google has taken more action than California government officials by adding warnings to the sponsored ads. Peterson expressed frustration that a private tech company protects Californians more effectively than their elected representatives. The NeedTags.com website now appears less frequently in search results since Google implemented its warning system. Company owner Eddy Asmerian previously claimed commitment to transparency but did not address specific customer complaints. The situation highlights how officially sanctioned private companies can exploit consumer confusion about government services.