In its ongoing effort to ensure accurate and transparent pricing in automotive sales, the Federal Trade Commission (FTC) on November 9 finalized an agreement with a Long Island, New York-based independent dealership group accused of misleading consumers through advertisements that promoted vehicle prices lower than the amounts consumers were ultimately required to pay. The dealership group had previously received one of the FTC’s March 2026 warning letters, which alerted recipients that certain advertising practices could violate Section 5 of the FTC Act. Under the agreement, the dealership is prohibited from misrepresenting the costs or terms associated with purchasing a vehicle. It must also ensure that any advertisement displaying a vehicle price prominently identifies the actual price consumers must pay, excluding only fees imposed by the government.
The agreement represents the latest enforcement action in the FTC’s ongoing focus on automotive advertising and pricing transparency following the March warning letters. NIADA reminds dealers to closely review their advertising practices and ensure that all advertised vehicle prices include documentation fees, processing fees, and any other charges that are not government-mandated. Dealers should take proactive steps to ensure their advertised prices accurately reflect what consumers will be required to pay and avoid practices that could attract regulatory scrutiny.
