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FTC Targets Auto Dealers Over ‘Deceptive Pricing’

The agency sent warning letters to dozens of auto groups about what it described as illegal practices and urged them to ensure their pricing policies enable transparency with consumers.

March 16, 2026
Photo of line of new cars on a lot

The agency said it has brought “pending actions” against Asbury Automotive Group, Leader Automotive Group and Lindsay Chevrolet regarding 'deceptive pricing.'

Source:

Pexels/Rangga Aditya Armien

2 min to read


The Federal Trade Commission, in an effort to clamp down on deceptive marketing across multiple industries, warned nearly 100 auto groups that they must adhere to auto pricing transparency laws while it targets several with pending enforcement.

In a letter dated March 13, the agency of the federal government tasked in part with protecting consumers pressed the 97 auto groups to review their pricing and advertising practices to ensure they include all required fees, among other transparency aspects. It said it will be watching how dealerships act on the matter.

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“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,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

“The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price.”

The agency said it’s motivated by the desire to support affordability, which has become a catchphrase in an inflated economy that’s challenging lower- and middle-income consumers to manage essential expenses. The average new-vehicle transaction price has hovered around $50,000 since hitting an all-time high in September.

Though he campaigned on managing prices, President Donald Trump treated the issue with disdain in December, calling it a “con job.” But his administration has lately touted measures aimed at controlling consumer costs, including several targeting home affordability.

In a press release on its aim to stamp out deceptive auto pricing, the FTC said it warned the dozens of auto groups it contacted about particular illegal practices. It listed:

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·      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 take into account the amount of an additional required down payment

·      conditioning the advertised price on consumers using dealer financing

·      requiring consumers to buy additional items not reflected in the advertised price

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·      advertising unavailable or nonexistent vehicles

The agency said it has brought “pending actions” against Asbury Automotive Group, Leader Automotive Group and Lindsay Chevrolet regarding "deceptive pricing."

The National Automobile Dealers Association issued a statement on the FTC actions, saying it’s cooperating with the agency.

“While the overwhelming majority of America's 17,000-plus dealers service their customers in a consumer friendly and compliant manner, NADA takes any potential advertising violations in the marketplace very seriously,” the trade group said. “We will continue to work with the FTC to address areas of concern.”

LEARN MORE: Solving Affordability and Negative-Equity Challenges

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