FTC sends warning letters about pricing to 97 auto groups

The FTC has sent warning letters to 97 auto dealership groups nationwide, telling them that their advertised vehicle prices must reflect the actual total price consumers are required to pay, including all mandatory dealer fees except government charges like taxes.

What the FTC announced

• On March 11, 2026, the FTC said it is sending letters to 97 auto groups across the U.S. about deceptive pricing concerns in their advertising.

• The agency frames this as part of a broader price-transparency initiative spanning housing, ticketing, hotels, groceries, and auto sales/leasing.

Core pricing expectations

• Advertised prices must be the total price consumers will pay, excluding only required government charges such as taxes.

• Dealers are urged to ensure advertised prices match the actual transaction prices charged to consumers at the dealership or online.

Practices flagged as potentially illegal

The letters list several pricing tactics the FTC views as deceptive under Section 5 of the FTC Act:

• Advertising a price that does not include all required dealer-imposed fees.

• Advertising prices that incorporate rebates or discounts not available to all consumers (e.g., conditional or targeted incentives baked into the headline price).

• Advertising a price that fails to reflect the amount of an additional required down payment.

• Conditioning the advertised price on consumers using dealer financing rather than allowing other payment methods.

• Requiring consumers to buy add-ons (products or services) that are not included in the advertised price.

• Advertising vehicles that are unavailable or nonexistent.

Enforcement context and risk

• The letters explicitly warn that such practices may violate Section 5’s prohibition on unfair or deceptive acts or practices.

• The FTC references pending enforcement actions against groups such as Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group as examples of deceptive pricing cases in the sector.

• The agency notes that the warning letters are not findings of law violations but are a clear signal that failure to correct problematic practices could lead to enforcement.

Implications for auto groups and compliance

• Recipients are urged to review advertising and pricing practices and, at a minimum, to compare advertised prices against actual out-the-door prices to confirm alignment.

• Trade associations have publicly acknowledged the letters and emphasized the need for compliant, consumer-friendly advertising, while the FTC leadership has framed this as part of the Trump administration’s broader focus on “junk fees” and price transparency in auto retail.

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