Consumer fraud and advertising enforcement action where the FTC sent warning letters to 97 auto dealership groups for deceptive pricing practices, such as advertising prices that exclude mandatory fees, misleading consumers about total costs. The letters stress the need for truthful and transparent pricing in the automotive industry.
No formal remedies imposed; the FTC issued warning letters urging dealers to ensure advertised prices include all mandatory fees and to review practices for compliance with the FTC Act.
In-house legal teams at automotive dealerships should review all advertising vendor agreements and consumer sales contracts to ensure compliance with FTC pricing rules. Vendor agreements with marketing firms must include clauses requiring all mandatory fees to be included in advertised vehicle prices, clear disclosure of rebate eligibility requirements, and prohibitions on conditioning prices on dealer financing. Customer sales contracts should be audited to confirm final prices match advertised rates with no undisclosed charges, and internal compliance policies should mandate regular review of marketing materials against FTC Act standards.
Entity
97 Auto Dealership Groups
Also known as: Auto Dealership Groups
Industry
AutomotiveOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/03/ftc-warns-97-auto-dealership-groups-about-deceptive-pricing
template auto warning letter
https://www.ftc.gov/legal-library/browse/warning-letters/template-auto-warning-letter
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"to 97 auto groups nationwide"
"compliance with the FTC Act and other rules"
"advertising a price that does not reflect all required fees,"
$750K
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$35.0M
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$1.5M
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