The agency has sent warning letters to 97 dealers
-
The Federal Trade Commission (FTC) has sent warning letters to 97 auto dealer groups nationwide about deceptive pricing practices.
-
Regulators say advertised vehicle prices must include all mandatory fees consumers are required to pay.
-
The agency signaled it will continue monitoring dealerships and take enforcement action if violations persist.
The Federal Trade Commission is stepping up scrutiny of auto dealers across the country, warning nearly 100 dealership groups that misleading price advertising could trigger enforcement action.
In letters sent to 97 auto groups, the FTC emphasized that any price advertised to consumers must reflect the full amount a buyer is required to pay, including all mandatory fees. The agency urged dealerships to review their pricing and advertising practices to ensure consistency between advertised prices and what customers are ultimately charged.
At a minimum, this means advertised prices should match actual prices charged to consumers, the FTC said, adding that it will continue monitoring the marketplace for compliance with federal law.
Curbing common complaints
Christopher Mufarrige, director of the FTCs Bureau of Consumer Protection, said the effort is aimed at curbing a common complaint among car buyers low advertised prices that increase significantly during the purchasing process.
The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price, Mufarrige said.
The warning letters are part of a broader FTC push to promote price transparency across multiple industries, including rental housing, hotels, ticketing, grocery delivery, and auto sales. The agency says the goal is to ensure consumers are not surprised by hidden charges or undisclosed fees that inflate the final cost of a product or service.
The FTC outlined several pricing practices it considers illegal or deceptive in the auto industry. These include advertising prices that exclude required fees, promoting discounts or rebates notavailable to all consumers, and failing to disclose required down payments. Other violations cited include conditioning advertised prices on dealer financing, requiring add-on purchases not reflected in the price, and advertising vehicles that are unavailable.
The agency also pointed to ongoing enforcement actions against companies such as Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group as examples of its crackdown on deceptive pricing.
The FTC said it will continue to evaluate dealer practices and warned that additional action could follow if violations are found.
Posted: 2026-03-17 13:13:13

















