The Federal Trade Commission warned 97 auto dealerships in March about deceptive pricing, calling for complete cost transparency so consumers know how much they have to pay.
The FTC’s letter reminded dealers to always reveal the total cost of a vehicle purchase, including any mandatory fees that customers will have to pay.
At a minimum, the FTC has asked auto dealers to ensure their advertised prices match the actual price charged to customers.
The body also listed several illegal practices dealers must avoid in the auto industry, and mentioned several pending actions it demanded from select dealers to address deceptive pricing.
FTC Reveals Dealership Names After Nearly Three Months
According to a report by The Drive, the FTC declined to reveal the names of the dealerships it had warned in March. However, last week, it posted the names of the auto dealers.
The publication lists 86 different dealerships. Some large dealer groups operate in multiple regions under different company names, so they received more than one warning, one for each entity. In reality, only about 86 unique dealers were affected. The names are as follows:
- Aaron Chrysler Dodge Jeep Ram
- Adzam Inc. dba Doug’s Lynnwood Mazda
- AutoNation, Inc
- Autopia Motorcars
- Benson’s Ingram Park Chrysler Jeep Dodge Ram
- Berkshire Hathaway Automotive
- Best Price Dealer
- Bud Clary Auto Group
- California Beemers Inc
- California Motors Direct
- Capital Auto Mall Premier
- Cardinal Buick GMC
- Cardinale Automotive Group
- CarHub
- Cincy Automall
- City Kia of Greater Orlando
- Clay Cooley Auto Group-Clay Cooley Enterprises
- Encore Chrysler Dodge Jeep Ram
- Fayetteville Dodge Ram
- Findlay Automotive Group
- Fontana Motors Direct
- Ford of Elizabethton
- Frisco Chrysler Dodge Jeep Ram
- Gettel Automotive
- Gilroy Chrysler Dodge Jeep Ram
- Greenway Auto Group
- Group 1 Automotive Inc.
- Hanna Imports
- Hardin Buick Pontiac GMC
- Hayes Chrysler Dodge Jeep of Gainesville
- Headquarter Hyundai
- Hendrick Automotive Group
- Hiley Automotive Group
- Holman
- Honda of Downtown Chicago
- Honda of Manhasset
- Houston Direct Auto
- Huntley Ford
- Hyundai of El Cajon
- Hyundai Stockton
- Integrity Automotive/MCS Integrity Co. Inc.
- Jack Phelan Chrysler Dodge Jeep RAM
- Jeff Wyler Automotive
- Jim Keras Automotive
- John Sisson Mercedes Benz
- John Sisson Motors
- John Sisson Nissan
- Ken Ganley Automotive Group
- Ken Garff Automotive Group
- Killeen Hyundai
- King of Jamaica Auto Inc.
- Lancaster Mitsubishi
- Legend Auto Sales
- Liberty Nissan
- Lithia Motors, Inc.
- Lokey Automotive Group
- Mac Haik Auto Group
- McGrath Acura of Downtown Chicago
- Old Orchard Nissan
- Orr Auto Group
- Ourisman Automotive Group
- Page Honda of Bloomfield
- Page Toyota
- Prestige Imports Lamborghini Miami
- Rairdon’s Honda of Burien
- Red McCombs Motors Ltd
- Route 23 Nissan
- Route 46 Auto Group
- Safford Automotive Group
- Sanford Imports
- Serra Chevrolet Buick GMC of Nashville
- Serra Honda
- Serra Kia of Trussville
- Serra Toyota
- Serramonte Subaru
- Seth Wadley Auto Group
- Sonic Automotive
- South Shore Nissan
- Superior Ford, Inc.
- Supreme Motors LLC
- Titanium Motors Inc.
- Universal Nissan Orlando
- Vancouver Toyota
- Victory Mitsubishi
- Visalia Hyundai
- Wagner Kia of Shrewsbury
What Could the Dealerships Have Done?
The dealerships mentioned above could have engaged in one or more practices identified by the FTC. They are as follows:
- Advertising a price that does not reflect all required fees,
- Advertising a price that reflects rebates or discounts not available to all consumers,
- Advertising a price that fails to take into account the amount of an additional required down payment,
- Conditioning the advertised price on consumers using dealer financing,
- Requiring consumers to buy additional items not reflected in the advertised price, and
- Advertising unavailable or non-existent vehicles.
The FTC stated that the letters to the dealers are part of an ongoing exercise to ensure transparency across different sectors, including rental housing, ticketing and hotels, grocery and delivery services, and auto sales and leasing.
It will continue to monitor auto dealerships and will take necessary action when required to ensure compliance with the FTC Act and other regulations. Director of the FTC’s Bureau of Consumer Protection, Christopher Mufarrige, said:
“The Trump-Vance FTC is committed to preventing auto dealers from misleading consumers with low advertised prices and then adding on mandatory fees at the end of the purchasing process.
“The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price.”