FTC Crackdown Targets Auto Dealer Ads With Misleading Prices

The FTC has launched a nationwide crackdown by warning 97 auto dealer groups that their advertised prices must reflect the full, all‑in cost of the vehicle, not artificially low “teaser” prices with hidden mandatory fees added later.

What the FTC just did

• Sent formal warning letters to 97 auto dealership groups across the U.S., flagging “concern” that their current advertising may be deceptive under the FTC Act.

• Publicly stated that advertised prices must be the total price consumers are required to pay, including all mandatory dealer fees and add‑ons that every buyer must purchase.

• Framed this as part of a broader, cross‑industry campaign against “drip pricing” and hidden fees, not a one‑off action.

Practices now in the crosshairs

The FTC letters list specific pricing tactics it considers likely unlawful if used in auto ads:

• Advertising a price that does not include all required dealer fees or mandatory add‑ons.

• Advertising a price that relies on rebates or discounts not actually available to all consumers (for example, loyalty or conquest rebates not clearly limited).

• Advertising a low price but requiring an additional, undisclosed down payment to get it.

• Conditioning the advertised price on the consumer using dealer financing or other specific financing terms.

• Requiring customers to purchase extra products (etch, nitrogen, protection packages) that weren’t included in the advertised price.

• Advertising vehicles that are unavailable or non‑existent, or not truly offered at the advertised price.

These letters emphasize that if dealers ignore the warnings, the Commission is prepared to bring enforcement actions, and it points to pending cases against groups like Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group as examples.

How this fits into the broader fee crackdown

• The initiative aligns with the FTC’s broader push to eliminate hidden and deceptive fees across markets, including its separate rulemaking on unfair or deceptive fees that targets bait‑and‑switch pricing and drip fees.

• FTC leadership has signaled continued monitoring of auto retail ads (online and offline) and reliance on consumer complaints to identify repeat offenders.

• Trade and compliance commentators are interpreting the letters as a sector‑wide compliance warning, not just a notice to 97 groups.

Snapshot: what dealers must do now