How to Spot the Hidden Fees the FTC Just Warned 97 Car Dealers About

The Federal Trade Commission has put 97 auto dealer groups on notice over what it calls deceptive pricing, telling them in plain terms that the price they advertise has to be the price a customer actually pays. For car buyers, the takeaway is direct: the low number in the ad often is not the number on the contract, and you have more leverage than you think to make a dealer honor the advertised figure. Here is what the FTC flagged, which tactics to watch for, and how to protect your wallet at the dealership.

The agency initially declined to name the recipients, then released the letters and the full list of dealerships through its warning letter database after receiving multiple Freedom of Information Act requests. One analysis found the warnings ultimately reached 203 dealership locations across the 97 groups. These were not small operators. The list includes several of the nation’s largest publicly traded retailers, among them Lithia Motors, AutoNation, Group 1 Automotive, and Sonic Automotive, along with locations affiliated with Berkshire Hathaway Automotive and Hendrick Automotive Group.

What the FTC Said and Who Got a Letter

The letters remind dealers that advertised vehicle prices should include all mandatory fees and accurately reflect the price consumers will actually pay at the dealership. The FTC did not accuse the specific recipients of wrongdoing. Instead, the letters function as a warning that regulators are watching, with the clear implication that enforcement could follow if the practices continue.

“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,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. He added that the agency “will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price.”

The warning campaign did not come out of nowhere. The agency has referenced ongoing matters involving dealership operators, including Asbury Automotive Group, along with actions against Lindsay Chevrolet and Leader Automotive Group, as examples of the kind of conduct that can draw scrutiny. The scale of the outreach, 97 groups in a single wave, points to a coordinated review of how cars are advertised rather than a handful of complaint-driven cases.

The Specific Tactics the FTC Flagged

The letters cited several examples of illegal pricing practices the FTC sees in the auto industry. Knowing them by name makes them easier to catch on a showroom floor:

• Advertising unavailable or non-existent vehicles to pull buyers in the door.
• Advertising a price that does not reflect all required fees.
• Advertising a price that reflects rebates or discounts not available to every customer, such as a recent-graduate or military offer most shoppers cannot claim.
• Advertising a price that fails to account for an additional required down payment.
• Conditioning the advertised price on the customer using the dealer’s own financing.
• Requiring buyers to purchase additional items, such as paint protection or add-on packages, that are not reflected in the advertised price.

The thread running through all of these is the gap between the headline price and the out-the-door price. A legitimate cost like state sales tax, title, and registration is unavoidable and varies by state. The problem the FTC is targeting is the practice of burying mandatory dealer-added charges, or attaching conditions, so the advertised figure was never one any ordinary buyer could actually pay.

How to Spot and Fight Hidden Fees

You do not have to wait for regulators to act to protect yourself. The single most effective move is to ask for the full out-the-door price in writing before you ever set foot in the showroom. That figure should list the vehicle price, documentation fee, sales tax, title, and registration, with no vague line items. Request it by email so you have a record, and get the same quote from two or three dealers to compare.

When you review the buyer’s order, scrutinize every line below the vehicle price. Charges like nitrogen-filled tires, paint sealant, fabric protection, dealer prep, or a vague market adjustment are typically negotiable or removable, and a dealer cannot lawfully treat an optional add-on as mandatory while advertising a lower price. If a salesperson says the advertised price only applies if you finance through the dealership, that is exactly the conditioning practice the FTC flagged; you can take the advertised price and arrange your own financing separately.

Bring documentation with you. Print or screenshot the advertisement, including the date and any disclaimers, and hand it across the desk if the price changes. Be prepared to walk away, since the willingness to leave is the strongest leverage a buyer has. If a dealer refuses to honor a clearly advertised price or pads the deal with mandatory charges that were never disclosed, you can file a complaint with the FTC at ReportFraud.ftc.gov and with your state attorney general’s consumer protection office, which often handles dealer advertising rules at the state level.

The Bigger Picture for Buyers

This warning wave lands at a punishing time to buy a car. Transaction prices remain high, monthly payments have stretched, and every undisclosed fee piles onto an already large purchase. A few hundred dollars in junk add-ons may sound minor next to a vehicle price, but rolled into a long loan and carrying interest, those charges cost far more over time than their sticker amount.

The FTC has separately pursued a dedicated rule aimed at these practices, known as the CARS Rule, though that effort has faced legal challenges, leaving the agency’s general authority over unfair and deceptive acts as its primary tool for now. That is part of why the warning letters carry weight: they signal that the agency intends to keep using its existing powers to police dealer advertising. Whether the letters actually change how cars are advertised remains to be seen, but the dealers named are on notice, and informed buyers benefit either way.

The practical message is the one the FTC itself made: insist that the advertised price is the price you pay. Get the out-the-door number in writing, compare dealers, refuse mandatory add-ons that were never disclosed, and report a dealer that will not honor its own ad. For more on the costs facing buyers right now, see our coverage of how to protect popular models that remain theft targets.

Reading the Buyer’s Order Line by Line

The contract a dealer hands you, often called the buyer’s order or purchase agreement, is where advertised prices and real prices diverge. Start at the top with the agreed vehicle price and make sure it matches the figure you were quoted in writing. Below it you will find legitimate government charges that no dealer controls: state and local sales tax, the title fee, and registration. Those are unavoidable and vary widely by state, so they are not the charges the FTC is targeting.

The documentation fee, often shortened to doc fee, sits in a gray area. It covers the dealer’s paperwork and is capped by law in some states while unregulated in others, which is why it can range from under fifty dollars to several hundred depending on where you buy. Ask what your state allows. Everything below those lines deserves the most scrutiny, because that is where dealer-added products live: extended warranties, gap coverage, paint and fabric protection, theft etching, nitrogen tires, and so-called dealer prep. None of those are mandatory, and you can decline any of them without losing the advertised vehicle price.

If a number on the contract does not match your written quote, stop and ask for it to be corrected before you sign. Once you sign, your leverage drops sharply, so the time to resolve a discrepancy is at the desk, not in the parking lot afterward. Take the few extra minutes to read every line, because that habit alone defeats most of the tactics the FTC just warned dealers about.

Sources:

• https://www.carscoops.com/2026/06/ftc-dealer-pricing-warning/
• https://www.ftc.gov/news-events/news/press-releases/2026/03/ftc-warns-97-auto-dealership-groups-about-deceptive-pricing
• https://www.ftc.gov/legal-library/browse/warning-letters/329726