Feds Tell 97 Car Dealerships To Knock It Off With The Hidden Fees Already
Car dealers can be a nightmare to strive (we love some of you, not all of you), thanks to shady sellers and infuriating hidden fees. Many dealers will wrangle your price with ridiculous and expensive nonsense like advertising fees, nitrogen tire inflation, and dealer prep fees, but that may be coming to an end. Federal Trade Commission I just told 97 dealership chains to stop this business.
“The Trump-Vance FTC is committed to preventing auto dealers from misleading consumers with low advertised prices and then adding mandatory fees at the end of the purchasing process,” FTC Consumer Protection Bureau Director Christopher Mufarrige said in a recent statement. “The FTC will continue to focus on monitoring auto dealers to ensure the marketplace operates efficiently and competitors compete transparently on price.”
Read more: These 10 Cars That Lost Their Value the Most in a Year
What happens to car dealerships now?
A car salesman gives a car keychain to someone. – shisu_ka/Shutterstock
In his letters to dealers, Mufarrige listed six specific rules of no-no that dealers should stop doing:
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Advertising a price that does not reflect all required fees,
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Advertising a price that reflects discounts or rebates not available to all consumers,
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Advertising a price that does not take into account the additional down payment required,
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Conditioning the announced price to consumers using dealer financing,
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Requiring consumers to purchase additional products not reflected in the advertised price; and
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Advertising vehicles that are unavailable or unavailable.
Although the FTC does not specifically name any dealers, letter template The letter sent to all of them read: “This letter is to inform consumers that you may be advertising lower prices for cars than you actually charge. Such deceptive tactics harm not only consumers but also competition by making it difficult for law-abiding businesses to compete on a level playing field.”
It’s unclear what will happen to dealers if they continue to violate any of these rules, especially since the FTC limits its scope. Rule on Unfair or Misleading Fees. Originally, car dealers were included in the rule, helping to prevent them from charging customers with hidden charges at the last minute. However, in December 2024, the impact of this rule was reduced to only cover live ticketing and short-term accommodation companies. The latest letter sent to dealers did not include any penalties for violating the new rules.
In response to the FTC’s letters, National Automobile Dealers Association (NADA) released a statement. “While the vast majority of America’s more than 17,000 dealers serve their customers in a consumer-friendly and compliant manner, NADA takes potential advertising violations in the marketplace very seriously. We will continue to work with the FTC to address areas of concern.”
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