SAN JOSE, Calif. — Dozens of California drivers are complaining they were tricked into clicking on a website they thought was the DMV — when it was actually a private company selling DMV services.

You might be surprised to learn that the DMV allows companies to take your DMV payments — and they can add as many extra fees as they want.

So why allow companies to profit from drivers who pay a DMV bill?

7 On Your Side has seen hundreds of complaints about one company in particular: NeedTags.com.

VIDEO: DMV-like ‘NeedTags’ threaten elderly customer with legal action over credit card dispute

Consumers say the website looks and works like the DMV site — but it’s about surprise fees.

A consumer advocate says the added fees could violate the state’s ban on unwanted fees, and a South Bay consumer is trying to raise awareness.

“It has all the look and feel of a 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’ve been, if you will, cheated,” Peterson said.

MORE: The DMV adds late fees and penalties after drivers register their cars with electronic checks

Apparently, he clicked on a third-party website by mistake: NeedTags.com, which offers DMV services — but refers to additional fees at checkout.

When he realized his mistake, he called to cancel the order. He was shocked by the response.

“If you dispute this transaction, we will take legal action immediately,” which is not what I would expect from a reputable company, he said.

But what upset him more? Peterson learned that NeedTags was not a rogue company, but a DMV partner. The DMV authorizes NeedTags and other vendors to sell DMV services and add as many additional fees as they wish.

“They can charge what they want, they’re a private company. My problem is, why does our government allow them? Why is it officially sanctioned by the government?” Peterson asked. “I don’t understand the government doing this to its own citizens.”

Consumer advocate Robert Herrell says the state should require companies like NeedTags to post prominent disclaimers.

“It should be clearer and much more visible,” Herrell said. “‘You’re not on the DMV site, if you want the DMV click here…’ And you’ll pay a lot more than you would on the DMV site directly.”

Dozens of Californians posted complaints online and to 7 On Your Side, saying NeedTags misled them into thinking it was the DMV.

MORE: Paperwork bottlenecks delay woman’s DMV vehicle registration renewal for six years

First, NeedTags pays Google to appear at the top of search results for DMV.

Also, the NeedTags website says “California DMV Registration Renewal” in big letters.

It’s not until checkout that consumers see the extra charges included on their bills.

“The Department of Motor Vehicles offers the same features for nothing. Why does NeedTags exist?” Peterson asked.

NeedTags owner Eddy Asmerian could not be reached, but told us the company is “committed to transparency” and the website shows fees before payment.

We asked DMV Director Steve Gordon about the increase in complaints about the DMV partner.

Gordon didn’t answer directly. But in emails to 7 On Your Side, a DMV spokesman said the NeedTags website says it’s not the DMV.

But where?

MORE: Driver Stuck With Taxes When DMV Sends Him New Sticker, Then Says He Can’t Renew Registration

“There are some small letters in there, but they’re written in a font size that’s considerably smaller than anything else on that page… the page is designed to draw your eye to the other elements, license plate images. .. violates every test of what we call “clear and conspicuous” that you can imagine,” said Robert Herrell.

As for hidden fees, the DMV said NeedTags lists them.

But even if they knew about the fees, consumers would have to scroll to the bottom of the site and click a button.

It shows they’ll pay an extra $49 per car or $100 for commercial plates and a host of smaller fees on top of the DMV fee.

“I would argue that it’s a violation of California’s original anti-trickle pricing law,” Herrell said.

We asked the DMV: Does NeedTags violate the state’s ban on hidden fees?

The DMV said to contact the Department of Justice.

“The optics are horrible here for the DMV to say ‘not our problem,'” Herrell said. “Now that you’ve brought this to our attention, the Consumer Federation of California will be following up. We will continue with the attorney general’s office.”

The DMV tells 7 On Your Side these partnerships started when the DMV had long lines and businesses helped ease the burden. But now, the DMV’s website can process transactions quickly, without an in-person visit, and it’s free. Despite its partnership, the DMV urges drivers not to use NeedTags — but to go directly to the DMV’s website.

Check out more stories and videos from 7 On your side.

The 7OYS Consumer Hotline is a free consumer mediation service for those in the San Francisco Bay Area. We assist individuals with problems related to consumption; we cannot assist in business-to-business cases or cases involving family law, criminal matters, landlord/tenant disputes, employment issues or medical issues. Please see the FAQ here. As part of our process of assisting you, it is necessary for us to contact the company/agency you are writing about. If you do not want us to contact them, please let us know immediately as it will affect our ability to work on your case. Due to the high volume of emails we receive, please allow 7 to 10 business days for a response.

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