FTC Warns Auto Dealers About Pricing Practices

Last week, the Federal Trade Commission announced that it sent letters to ninety-seven auto dealership groups, warning them about their pricing practices. Specifically, the FTC warned them that the advertised price must be the total price that consumers are required to pay – and that the advertised price should include all mandatory charges (excluding required government charges, like taxes).

In the letter, the FTC gave examples of what it says are illegal pricing practices, such as:

• Advertising a price that does not include all required fees;
• Advertising a price that reflects rebates or discounts that are not available to all consumers;
• Advertising a price that fails to take into account the amount of an additional required down payment;