- FTC sent warning letters to 97 dealership groups over potentially deceptive vehicle pricing.
- The agency says advertised prices should include all fees and match actual transaction prices.
- Dealers weren’t fined, but the FTC signaled further enforcement could follow.
Customers across the USA say that the dealership experience is stressful. Part of that stress is the negative reputation some dealers have for ripping off their customers. Today, the FTC is providing more evidence of shady practices and a warning shot over the bow of 97 dealers it says might be advertising prices that don’t line up with reality. These aren’t tiny mom and pop set-ups either.
Specifically, the letters sent to the dealers in question remind them that advertised vehicle prices should include all mandatory fees and accurately reflect the price consumers will actually pay at the dealership. It’s crazy that this even has to be said, but here we are. Importantly, the agency didn’t accuse the recipients of specific wrongdoing. Instead, the letters warn against what the FTC calls “deceptive pricing” and serve as a clear warning that regulators are watching.
Read: FTC Wants Car Dealers To Rat Out Rivals Over Misleading Prices
“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,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price.”
In a release last month, the agency has specifically referenced ongoing cases involving dealership operators, including Asbury Automotive Group, along with actions against Lindsay Chevrolet and Leader Automotive Group, as examples of the kind of conduct that can draw regulatory scrutiny.
This wasn’t limited to small dealerships either. According to the FTC, recipients included several of the nation’s largest publicly traded retailer groups, including Lithia Motors, AutoNation, Group 1 Automotive, and Sonic Automotive. The FTC also sent warning letters to locations affiliated with Berkshire Hathaway Automotive and Hendrick Automotive Group.
According to Autonews, one analysis found the letters ultimately reached 203 dealership locations across the 97 dealer groups. The FTC initially declined to identify recipients publicly, but later released the letters and dealership names through its warning letter database after receiving multiple Freedom of Information Act requests.
Whether that actually changes how cars are advertised remains to be seen. But for now, the FTC has at least made it clear that it’s watching and these dealers are on notice.
Below you’ll find the full list of dealers the FTC sent letters to. The agency had previously noted that:
The letters the FTC sent to the auto dealers cite several examples of illegal pricing practices in the auto industry including:
- advertising unavailable or non-existent vehicles.
- advertising a price that does not reflect all required fees,
- advertising a price that reflects rebates or discounts not available to all consumers,
- advertising a price that fails to take into account the amount of an additional required down payment,
- conditioning the advertised price on consumers using dealer financing,
- requiring consumers to buy additional items not reflected in the advertised price, and
- advertising unavailable or non-existent vehicles.
