FTC CRACKS DOWN ON CAR DEALER PRICING TRICKS AFFECTING CONSUMERS NATIONWIDE
The FTC sent 97 warning letters in March 2026 to dealership groups, which collectively cover 203 individual dealership locations across the U.S. The letters were made public around late May 2026.
Background
The FTC warned these dealers that their advertising may violate Section 5 of the FTC Act by using bait-and-switch-style tactics, such as:
• Advertising a low price that doesn’t include mandatory dealer fees or add-ons.
• Tying prices to unavailable rebates, specific financing, or other conditions.
• Advertising prices for vehicles that aren’t actually available.
The core message: The advertised price must be the total price consumers will pay (excluding only government fees like taxes, title, and registration).
Sites like CarEdge compiled full lists with states, parent groups, and their own transparency grades for many of the dealers.
FTC Warning Letters Hit 203 Auto Dealers: The Full Breakdown by State and What They Were Accused Of
In March 2026, the Federal Trade Commission (FTC) took a major step toward cleaning up car-buying transparency by sending warning letters to 97 auto dealership groups. When you dig into the details, those letters named 203 individual dealership locations nationwide.
The FTC didn’t mince words: many dealers were advertising prices that consumers couldn’t actually get — a classic deceptive practice that wastes shoppers’ time and undermines honest competitors.
Why This Matters
Car buying remains one of the most stressful and expensive purchases most people make. Lowball online prices that balloon once you get to the Finance Office have been a longstanding complaint. The FTC’s action reinforces a simple rule: The price you advertise should be the price people actually pay.
The letters cite common violations including:
• Advertising prices that exclude mandatory dealer fees or add-on products.
• Promoting discounts or rebates not available to all buyers.
• Conditioning the advertised price on using dealer financing.
• Advertising vehicles that aren’t in stock or don’t exist.
The 203 Dealers: By the Numbers
According to analyses by CarEdge and others, the flagged dealerships span dozens of states, with heavy concentrations in high-volume markets like Texas, Florida, California, and the Midwest/South.
Major national and regional groups were represented, including:
• Lithia Motors (one of the largest in the U.S.)
• AutoNation
• Group 1 Automotive
• Sonic Automotive
• Berkshire Hathaway Automotive
• Hendrick Automotive Group
• And many smaller or regional players.
Notable patterns:
• Texas and Florida had among the highest numbers of flagged locations.
• Some large public companies had multiple stores named.
• Several dealers already scored poorly on independent transparency ratings
(D or F grades for providing written out-the-door pricing).
For the full searchable list with specific dealership names, locations, parent groups, and transparency scores, check the FTC’s public legal library of warning letters.
What Should Consumers and Dealers Do?
For buyers: Always demand a written “out-the-door” price before visiting the dealership. Shop multiple stores and compare total costs, not just advertised “sticker” or teaser prices.
For dealers: The FTC is watching. Review your website, ads, and sales processes to ensure advertised prices are realistic and inclusive of mandatory fees. This isn’t just about avoiding future enforcement — it’s about building long-term customer trust.
This action shows the FTC remains focused on auto industry transparency even after some broader rulemaking efforts were challenged. Expect more scrutiny, not less.
