Key Takeaway
The FTC has sent warning letters to 97 auto dealership groups nationwide, expressing “concern” that all these dealers are violating the law, and putting the entire industry on notice that advertised vehicle prices must reflect the true, all-in price consumers will actually pay—including all mandatory fees. Dealers should act immediately to audit their advertising and pricing practices.
Background
On March 13, 2026, the Federal Trade Commission (FTC) announced that it had sent warning letters to 97 auto dealership groups across the United States. The letters warn that advertised prices must represent the total price, including all mandatory fees, that consumers will be required to pay. This enforcement signal is part of the FTC’s broader, cross-industry campaign to eliminate hidden charges and ensure transparent, all-in pricing.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated: “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. The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price.”
This is a very aggressive interpretation of the current federal advertising standards, and dealers should pay close attention to their price advertising to ensure compliance with these standards, as well as their state law requirements.
What the FTC Letters Require
The warning letters state that the FTC is “concerned” that these 97 dealer groups are violating price advertising standards, and direct these dealers to review their advertising and pricing practices and, at a minimum, ensure that:
- All advertised prices include every fee consumers will be required to pay to purchase a vehicle;
- Advertised prices match the actual prices charged to consumers at the point of sale; and
- No mandatory fees, add-ons, or financing conditions are concealed until the consumer reaches the final stages of purchase.
Illegal Pricing Practices Cited by the FTC
The letters specifically identify the following pricing practices as potentially unlawful under the FTC Act:
- Advertising a price that does not reflect all required fees;
- Advertising a price that reflects rebates or discounts not available to all consumers;
- Advertising a price that fails to account for an additional required down payment;
- Conditioning the advertised price on the consumer using dealer financing;
- Requiring consumers to purchase additional items not reflected in the advertised price; and
- Advertising unavailable or non-existent vehicles.
Active Enforcement Actions
The FTC’s letters are not merely advisory. They virtually allege that these 97 dealer groups violate these requirements. In addition, the letters accompany a number of stated active enforcement proceedings. The agency has cited pending actions against several dealership groups, including Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group, as examples of the type of conduct it will continue to pursue. The FTC has stated it will monitor the marketplace and take additional enforcement action as warranted. DEALERS: TAKE THIS WARNING SERIOUSLY. The FTC is clearly signalling more enforcement actions to come.
Recommended Immediate Steps for Dealers
In light of this enforcement sweep, auto dealers should take prompt action:
- Contact ComplyAuto and see how our Guardian product can help. Guardian utilizes AI to ensure that all your ads are scanned and reviewed for compliance with federal law as well as all 50-state advertising laws. It is the only tool of its kind, and the most powerful defense that dealers have to protect against advertising claims.
- Conduct a comprehensive audit of all current advertising to confirm that advertised prices reflect all mandatory fees and charges (Guardian can help);
- Review any price promotions, rebates, or discount programs to ensure all eligibility conditions are clearly and conspicuously disclosed;
- Examine financing-contingent pricing to confirm compliance with applicable disclosure requirements;
- Review add-on product practices to ensure no mandatory products are excluded from advertised prices, and;
- Train sales and finance staff on compliant pricing disclosure practices.
Broader Regulatory Context
This shows that the Trump administration is still going to be quite active in enforcing existing rules against dealers. Now is not the time to let down your guard. Dealers should expect ongoing and heightened FTC scrutiny of pricing practices and should not treat these warning letters as being only aimed at the recipients. These are intended to get the attention of all dealers nationwide, and they are just the beginning.