The Federal Trade Commission (FTC) has issued warning letters to 97 auto dealership groups across the United States, reminding them that advertised vehicle prices must include all mandatory fees that consumers are required to pay. The agency emphasized that advertised prices should reflect the total cost to buyers, excluding only government-imposed fees.
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The letters encourage dealerships to review their advertising and pricing practices to verify that advertised prices match the prices actually charged to consumers. The FTC indicated that it will continue monitoring the auto sales market and take further action as necessary to enforce compliance with the FTC Act and other regulations.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said the agency is focused on preventing dealers from advertising low prices while adding mandatory fees later in the purchase process. He stressed that price transparency is critical for market efficiency and fair competition.
The FTC detailed several deceptive practices targeted by the warning, including advertising prices that omit required fees, using rebates or discounts unavailable to all customers, tying prices to dealer financing, mandating purchases of unadvertised add-ons, and promoting unavailable or nonexistent vehicles.
The agency’s template letter to dealers noted that the warnings do not represent final findings or accusations but serve as a prompt for dealerships to ensure their pricing practices comply with consumer protection laws. These efforts are part of the FTC’s broader initiative to promote transparency and prevent hidden fees in multiple markets, including auto sales, rental housing, and hospitality.
The warning campaign reflects ongoing FTC priorities under Chairman Andrew Ferguson to safeguard consumers against misleading price advertising across industry sectors.
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