On March 13, the Federal Trade Commission (FTC) sent warning letters to 97 automobile dealership groups, putting them on notice that their pricing practices may violate Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices (UDAP) as well as unfair methods of competition.
While the FTC did not publicly identify the recipients in their press release, which includes a sample of the warning letter, this action makes clear that the Commission views deceptive vehicle pricing as a top enforcement priority.
What the Letters Say
The warning letters inform dealers that the price they advertise should be the actual price consumers will pay, aside from required government charges such as taxes. A warning letter is not a determination that a dealer has violated the law. It is, however, a clear signal from the FTC that it has identified conduct it believes is likely unlawful and that failure to correct the issue promptly could lead to serious legal consequences,
