On the Dash:
- The FTC has named all 97 dealership groups that received deceptive pricing warning letters in March.
- Several top-ranked dealer groups received letters, including Lithia Motors, AutoNation, and Hendrick Automotive.
- Every dealer received the same form letter with no individualized findings or specific allegations.
The Federal Trade Commission (FTC) has made public the names of the 97 auto dealership groups it warned about deceptive pricing practices in March, revealing that several of the country’s largest retailers were among the recipients.
Initially, the FTC sent the letters in March, warning dealers that advertised vehicle prices must reflect all mandatory fees. At the time, the agency declined to identify the recipients. However, those names are now listed on the FTC’s website, alongside copies of each individual warning.
The recipients
The full list includes some of the most recognizable names in auto retail, including Lithia Motors, the largest dealership group in the United States by new-vehicle sales. So did AutoNation, Group 1 Automotive, Sonic Automotive, and Hendrick Automotive Group.
Other major groups on the list include Ken Garff Automotive Group, Ken Ganley Automotive Group, Berkshire Hathaway Automotive, Morgan Auto Group, and Holman.
What’s in the letters
Every one of the 97 dealers received the exact same letter with only their name and address swapped in. No dealer received individualized findings or specific allegations.
The letters stated that each recipient “may be advertising prices for cars that are lower than what you actually charge consumers” and said the agency was “concerned that your company may be engaging in one or more of these practices.” The letters also stated that they were “not intended to represent any conclusions on whether your dealership or dealership group is engaging in these practices.”
The letters listed six pricing practices the FTC considers illegal:
- Leaving required fees out of an advertised price
- Advertising discounts not available to all consumers
- Omitting a required down payment from an advertised price
- Tying an advertised price to dealer financing
- Requiring consumers to buy add-ons not shown in the advertised price
- Advertising vehicles that don’t exist or aren’t available
The recipients were encouraged to compare their advertised prices against actual transaction prices and confirm that they match. The FTC said it will continue monitoring the marketplace and may take additional enforcement action.
CBT News Auto Leadership Summit: Fair Pricing and Compliance
To address industry-wide compliance questions stemming from the FTC’s pricing policy, CBT News is hosting the Auto Leadership Summit on Fair Pricing and Compliance in Washington, D.C., on June 16.
The one-day event, held at the Salamander Hotel, will bring together dealers, legal experts, and elected officials, including Ohio Sen. Bernie Moreno.
Session topics include an in-depth analysis of the FTC ruling, best practices for transparent pricing and consumer disclosure, compliance frameworks for advertising and dealership operations, and a legislative outlook from policy advocates.
Registration is now open at cbtnews.com/auto-leadership-summit.
