FTC Issues Warning to 97 Auto Dealerships Over Deceptive Pricing Practices
The Federal Trade Commission has warned 97 auto dealership groups to ensure their advertised prices reflect the total cost, including all mandatory fees, to protect consumers from deceptive pricing.
12.03.2026 | Federal Trade Commission
The Federal Trade Commission (FTC) is taking action against deceptive pricing practices in the auto industry by sending letters to 97 dealership groups across the nation. These letters emphasize that advertised prices must include all mandatory fees that consumers will be required to pay when purchasing a vehicle.
FTC Director of the Bureau of Consumer Protection, Christopher Mufarrige, stated that the agency is committed to preventing auto dealers from misleading consumers with low advertised prices that do not reflect the total cost. The FTC will continue to monitor the marketplace and take further action as necessary to ensure compliance with the FTC Act and other regulations.
The letters encourage auto dealers to review their advertising and pricing practices, ensuring that the prices advertised match the actual prices charged to consumers. The FTC's efforts are part of a broader initiative to promote price transparency across various markets, including rental housing, ticketing, and grocery services.
Examples of illegal pricing practices cited in the letters include advertising prices that do not reflect all required fees, using rebates or discounts not available to all consumers, and conditioning advertised prices on dealer financing. The FTC has also noted ongoing actions against specific dealerships for similar deceptive practices.
