By Mark Sanborn
Senior Product and Regulatory Counsel
State attorneys general across the country are increasingly cracking down on deceptive “junk fees” in automotive sales and lease transactions. Two recent enforcement actions—one in Maryland and another in New York—highlight a growing regulatory focus on fee transparency and fair pricing that all dealers, regardless of location, should pay close attention to.
Maryland’s Settlement Over “Sales Commission” Fees: A Warning for Dealers
Maryland Attorney General Anthony Brown recently secured a significant settlement against a dealership over its alleged use of so-called “sales commission” fees. The Attorney General’s Consumer Protection Division found that despite presenting the fees as optional and including opt-out language, the practice violated consumer protection laws.
The dealer was ordered to:
- Pay $3 million in civil penalties,
- Refund consumers who were charged the fees, and
- Cease the use of such sales commission fees in future deals.
The Maryland Attorney General emphasized that disclosures alone do not legalize such fees, especially if they are not prominently included in advertised prices. The violations stemmed not just from the existence of the fees themselves, but also from the dealer’s failure to clearly include all non-governmental fees in the advertised total vehicle price, creating a misleading sales environment.
New York’s Crackdown on Lease Buyout Fees: Enforcement in Action
Following Maryland’s lead, the New York Attorney General’s Office has aggressively pursued dealers over undisclosed or inflated fees. In a recent announcement on May 6, 2025, New York AG Letitia James revealed settlements with eight Nissan dealerships accused of overcharging more than 1,700 consumers during end-of-lease buyouts. The violations included adding undisclosed “dealership” or “administrative” fees and inflating prices on invoices, in violation of lease agreements.
The settlements total over $3.2 million, with $2.8 million earmarked for consumer restitution and $400,000 in penalties. Consumers will receive automatic restitution, and the dealerships must change their invoicing practices to prevent future violations. This effort is part of a broader campaign by the AG’s office, which has recovered over $4.5 million in restitution and $1 million in penalties from 15 Nissan dealerships since March 2024.
Enforcement Lessons and Legal Standards in New York
Dealers should take this as a serious cue: do not assume a fee is legal simply because it is disclosed, labeled “optional,” or includes opt-out language. New York law prohibits “misleading” or “deceptive” advertising broadly, but the Attorney General’s Advertising Guidelines for Auto Dealers set a higher standard:
- The advertised price must reflect the actual purchase price, excluding only government charges such as taxes, title, and registration.
- A clear disclosure statement noting this must appear adjacent to the advertised price.
- Failure to include dealer fees in the advertised price can be deemed deceptive advertising.
New York dealers should not assume that relying on fine print or disclosures made after the fact will avoid enforcement. Furthermore, using third-party website managers or marketing vendors does not exempt the dealership from liability. The ultimate responsibility for compliance always rests with the dealership itself.
Proactive Compliance: Steps Dealers Nationwide Can Take
Dealers should not expect fine print or post-sale disclosures to protect them from investigations. Many state laws prohibit “misleading” or “deceptive” advertising, and regulators are increasingly scrutinizing fees that do not comply with state law. Dealers cannot delegate these responsibilities–liability remains with the dealership regardless of third-party marketing or website managers.
In addition to Maryland and New York, several other states, including Rhode Island, California, and Massachusetts, have recently enacted new “junk fee” regulations. While these laws generally target subscription services and recurring charges, they reflect a broader regulatory trend toward cracking down on hidden and deceptive fees across multiple industries, including automotive sales.
To avoid costly enforcement actions, dealers should:
- Audit all advertising content, especially online listings
- Eliminate any fees that might be perceived as misleading, even if optional
- Train staff on transparent pricing and disclosure policies
- Consult legal counsel for compliance with state advertising laws
How ComplyAuto Supports Dealer Compliance
With regulatory scrutiny intensifying, proactive compliance is not optional—it’s essential. ComplyAuto Guardian offers regular monitoring of dealer websites to flag and address advertising violations under both state and federal rules. Our tools help ensure that your pricing is transparent, your advertising is compliant, and your dealership is protected from costly enforcement actions.
In today’s evolving regulatory climate, don’t wait for the Attorney General’s office to come knocking. Let ComplyAuto help you safeguard your business.