The Federal Trade Commission announced on Mar. 13 that it is sending warning letters to 97 auto dealership groups across the country, instructing them that advertised vehicle prices must include all mandatory fees required for purchase.
The FTC said this action aims to ensure price transparency in the auto market and protect consumers from misleading advertising. The agency emphasized that advertised prices should match the actual amount charged at the point of sale, including all required fees.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said, “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.” Mufarrige added, “The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price.”
According to the FTC, these letters are part of a broader effort to promote price transparency in various markets such as rental housing, ticketing and hotels, grocery and delivery services, as well as auto sales and leasing. The agency stated its commitment to ensuring consumers pay only what is advertised without being subjected to hidden charges or illegal conduct.
The letters cite several examples of illegal pricing practices in the industry. These include advertising prices that do not reflect all required fees or rebates not available to everyone; failing to account for additional down payments; conditioning prices on dealer financing; requiring purchases of extra items not included in advertisements; and promoting vehicles that are unavailable or non-existent. The FTC also referenced ongoing enforcement actions against Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group regarding deceptive pricing.
The Commission reiterated its mission to promote competition while protecting and educating consumers. It encouraged individuals seeking more information or wishing to report fraud or scams to visit consumer.ftc.gov or ReportFraud.ftc.gov.
