Artificial IntelligenceCryptocurrencyMetaverseCybersecurityTech Forward

Carvana’s Illinois problems continue. Startup is barred from selling cars in state for second time in under three months

July 20, 2022, 3:18 PM UTC
Cars in front of a building.
Vehicles sit parked outside the Carvana car vending machine in Frisco, Texas.
Laura Buckman/Bloomberg — Getty Images

Don’t look for Carvana’s automotive vending machines to dispense vehicles in Illinois in the immediate future.

For the second time in just over two months, the startup auto dealer has been prohibited from conducting sales in the state. Numerous complaints regarding title transfers are at the heart of the suspension.

“My top commitment is protecting the interests and well-being of Illinois consumers,” said Illinois Secretary of State Jesse White in a statement. “I applaud the Illinois Secretary of State Police for their ongoing efforts to protect customers. We will continue to do everything we can to ensure that every customer is properly served.”

Carvana’s business license in the state was first suspended on May 10. That was lifted by the end of the month, after the company agreed to follow strict guidelines set by the Secretary of State’s office. Earlier this week, though, the state said Carvana had failed to meet the guidelines and “continued to conduct business in a manner that violates Illinois law,” which led to the second suspension.

Several Carvana customers in the state have complained about long waits, sometimes of months, before they received their license plates and titles—and the Secretary of State’s office is encouraging people who had similar experiences to reach out to it directly.

People who already ordered a vehicle from Carvana in Illinois will still be able to receive it, but the company cannot make any additional sales in the state “until the issues are resolved,” officials said.

It’s the latest development in an increasing bad year for Carvana. In May, the company saw shares tumble 90% from their high, and laid off 12% of its workforce. Still, it remains the dominant online used car retailer, selling 425,200 vehicles last year—nearly six times as many as its nearest online-only competitor, Vroom.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.