On August 19, 2026, the Federal Trade Commission (FTC) and Connecticut Attorney General announced a $4 million settlement resolving allegations of deceptive pricing and unauthorized fee practices by a Connecticut dealership. The underlying lawsuit alleged that the dealership and certain owners and managers deceived consumers about vehicle prices and charged consumers for additional products and fees without their knowledge or consent.
Individual Defendants Named Personally
Notably, the enforcement action included claims against individual owners and managers in addition to the dealership itself. As with the recent FTC and Maryland AG enforcement action against a Maryland dealership group, the case demonstrates regulators’ willingness to pursue individuals, not just dealership entities, for alleged consumer protection violations.
Dealership owners and management teams should continue to recognize that individual liability can be a significant risk in federal and state enforcement actions. Additionally, when individuals are personally bound by injunctions or settlement orders, the applicable requirements and restrictions generally follow those individuals even if they leave the dealership and go to work for another employer. In other words, changing employers does not necessarily relieve an individual defendant of his or her continuing obligations under an applicable court order.
Alleged Deceptive Conduct
The agencies alleged that the dealership engaged in multiple deceptive practices, including:
- Charging consumers additional amounts to “certify” vehicles that had already been advertised as certified pre-owned;
- Charging consumers for add-on products, including total loss protection, without their knowledge or consent; and
- Misrepresenting material aspects of vehicle transactions, including vehicle certification and warranty coverage.
Settlement Terms: $4 Million in Consumer Relief
Under the proposed settlement, the defendants must pay $4 million for consumer redress. In announcing the settlement, the FTC emphasized the importance of price transparency in the automotive marketplace and ensuring consumers understand the actual price they will be required to pay.
Beyond monetary relief, the proposed order imposes significant ongoing compliance requirements, related to advertising and pricing practices.
What This Means for Auto Dealers
This settlement follows closely behind a number of similar advertising enforcement actions against dealers by the FTC and state authorities. Clearly, the FTC and state attorneys general remain focused on dealership advertising, pricing transparency, and F&I product-sale practices. All dealers, regardless of size or state, should review their advertised pricing, certification fees, add-on disclosure and consent procedures, and F&I practices in light of these enforcement actions.
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