WASHINGTON, D.C. — The Federal Trade Commission has sent warning letters to 97 auto dealer groups across the country, telling them that advertised vehicle prices must reflect the full cost consumers will be required to pay, including all mandatory fees.
What This Means for You
- Car dealers must ensure advertised prices include all mandatory fees.
- The FTC warned dealerships it may take enforcement action if misleading pricing continues.
- Consumers should expect advertised vehicle prices to match what they actually pay.
The letters instruct dealerships to review their advertising and pricing practices to ensure advertised vehicle prices match the actual amount charged to buyers.
FTC Targets Hidden Fees in Car Sales
Federal regulators said the warning letters are intended to address pricing tactics that can make vehicles appear cheaper in advertisements than they are at the time of purchase.
According to the FTC, the agency has observed several practices in the auto industry that may violate federal consumer protection laws.
Those practices include advertising prices that do not include required fees or that rely on discounts not available to all customers.
In some cases, dealers advertise prices that assume buyers will make a larger down payment than typical purchasers or require buyers to use dealer-arranged financing in order to receive the advertised price.
Other Pricing Practices Under Scrutiny
The FTC also cited additional practices that may be considered deceptive.
These include requiring customers to purchase additional products or services that were not included in the advertised price and advertising vehicles that are not actually available for sale.
The agency said such practices may violate the FTC Act, which prohibits unfair or deceptive acts or practices in commerce.
Ongoing FTC Enforcement Efforts
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said the agency will continue monitoring the marketplace.
“The Trump-Vance FTC is committed to preventing auto dealers from misleading consumers with low advertised prices and then adding on mandatory fees at the end of the purchasing process,” Mufarrige said.
He added that the agency intends to ensure that businesses compete transparently on price.
Broader Push for Price Transparency
The FTC said the letters are part of a broader effort to improve price transparency across several industries.
In addition to auto sales, the agency has recently focused on pricing practices in rental housing, ticketing and hotel services, grocery and delivery platforms, and vehicle leasing.
The FTC also noted that it has filed enforcement actions against several auto dealer groups in recent cases involving alleged deceptive pricing practices, including Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group.
The agency said it will continue monitoring auto dealerships and may pursue additional enforcement actions if violations are identified.
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