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These 97 Car Dealers Were Warned About 'Deceptive' Pricing By The FTC

The list includes some of the largest dealers in the country.

AutoNation Ford Dealership

Photo by: AutoNation

Anthony Alaniz Anthony Alaniz

By: Anthony Alaniz

Jun 5, at 10:00am ET

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The Breakdown:

The US Federal Trade Commission has revealed a list of the 97 dealers it warned about allegedly using "deceptive pricing" practices. The list includes some of the largest dealerships in the country, like Lithia Motors, AutoNation, and Hendrick Automotive Group.  

In March, the agency said the letters were sent to "encourage dealers to review their advertising and pricing practices, including ensuring advertised prices include all fees consumers will be required to pay when buying a vehicle." At the time of the announcement, the FTC did not disclose which dealers it had contacted.  

The FTC is attempting to ensure that prices are "transparent and truthful,” according to the letter it sent to dealers. The agency wants to discourage certain pricing practices that obscure the true cost of the car and has sent letters to dealers advising them that they may be promoting prices that are "lower than what you actually charge consumers."

The letters list possible illegal practices such as "Advertising a price that does not reflect all required fees," "Conditioning the advertised price on consumers using dealer financing," "Advertising unavailable or nonexistent vehicles," and more. The letters don’t mean the dealers are necessarily guilty of engaging in these practices. It reads:  

'This letter is not intended to be a comprehensive statement of concerns that may exist about your dealership or dealership group. Nor is it intended to represent any conclusions on whether your dealership or dealership group is engaging in these practices'

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The agency revealed the names in late May, and these are the 97 dealerships that received a letter.  

Motor1’s Take: There are few things as frustrating as seeing a car advertised for one price, only to get to the dealer and find out it is far more expensive. That not only wastes time and frustrates consumers but is also bad business that could turn buyers toward brands with direct-to-consumer sales models just to cut down on the chaos.  

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Source: US Federal Trade Commission via Automotive News

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