The Federal Trade Commission is turning up the heat on car dealers again.
This time, it is not just warning stores about misleading pricing. It is also making it clear that honest dealers should speak up when nearby competitors are playing games with advertised prices.
That is a pretty aggressive message for an industry already under pressure over fees, add-ons, and bait-and-switch complaints.
And if you are a dealer cutting corners, it now sounds like the FTC would be perfectly happy if your rivals helped bring you down.
The FTC Is Going After Misleading Advertised Prices
The latest push follows the FTC’s warning to dozens of dealership groups that advertised vehicle prices must include all mandatory fees a customer is actually required to pay.
In other words, dealers cannot flash an attractive low price online and then stack unavoidable charges onto the deal later.
That kind of pricing tactic has been a sore spot for years.
It gets shoppers through the door with one number, then hits them with a very different number when it is time to sign.
The FTC clearly wants that to stop.
Honest Dealers Are Being Told To Speak Up
According to reports from an FTC webinar, Bureau of Consumer Protection director Christopher Mufarrige suggested that honest dealers should not stay quiet if they know competitors are breaking the rules.
His argument is simple enough.
When one dealership uses misleading pricing, it pulls customers away from stores that are actually trying to be transparent.
That means bad actors are not just hurting consumers.
They are also hurting honest businesses that are trying to compete fairly.
From the FTC’s perspective, that makes silence part of the problem.
Doc Fees Are Also Under The Microscope
Another major issue discussed during the webinar was doc fees.
The FTC reportedly wants those fees clearly included in the advertised total price so shoppers understand what they will really pay to drive the vehicle home.
Doc fees often feel like one of the easiest ways for a deal to get more expensive. Unlike destination charges, doc fees are generally tied to processing and paperwork costs, and they are often governed by state law.
Still, the FTC does not seem interested in excuses if those costs are mandatory and not clearly disclosed upfront.
NADA Says Most Dealers Are Following The Rules
The National Automobile Dealers Association has said it takes advertising compliance seriously and maintains that the vast majority of dealers are doing things properly.
That may be true, but the FTC has also made it clear that it believes at least some cases are serious enough to justify direct enforcement action.
The agency is not talking like this is some minor paperwork problem; it is talking like deceptive pricing is still a serious issue in the retail car market.
This Could Get Ugly Fast
The most interesting part of all this is what happens next.
If dealers really do start reporting each other to the FTC or to NADA, the industry could get a lot messier very quickly.
Some stores will call it accountability, others will call it snitching.
Either way, the message from the FTC is fairly straightforward: if you are advertising one price and trying to collect another, do not assume your competitors will keep your secret.