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FTC Warns 97 Auto Dealer Groups Over Deceptive Pricing Tactics

The agency signals case-by-case enforcement after the CARS rule was vacated.

Overview

  • The FTC sent warning letters to 97 dealer groups on March 13, citing concerns over deceptive auto pricing.
  • The letters list practices the agency views as illegal, including omitting mandatory fees, conditioning prices on dealer financing, and advertising unavailable vehicles.
  • Recipients were told to review ads to ensure the advertised and actual prices match, with further enforcement possible after market monitoring.
  • The notices are warnings rather than findings of wrongdoing, and the FTC said recipients were selected using nonpublic criteria.
  • The FTC pointed to ongoing cases involving Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group and cited surveys showing deceptive practices in at least 75% of responses, while NADA said it will work with the agency to address concerns.