FTC Sends Warning Letters to 97 Dealer Groups. Here’s What Dealers Should Know.

The Federal Trade Commission’s recent letter to 97 dealership groups is not a verdict and it is not a lawsuit. But it is a clear signal that the agency wants to see stronger alignment between the price customers see advertised and the price they actually pay.

Most dealers already operate with strong compliance standards and customer-first practices. What this moment offers is an opportunity to reinforce what the best stores already do well: clear pricing, clear expectations, and a buying process customers can trust.

On March 13, the FTC announced it sent warning letters to 97 dealership groups about advertising practices the agency believes could violate federal law.

The letter reminds dealers that advertised prices should include all mandatory fees, except government charges such as taxes, and encourages stores to review their advertising and pricing practices to ensure they match federal law.

Just as important, the FTC was careful to state the letters do not represent a conclusion of wrongdoing by any dealer group. The agency says it is “concerned” certain practices may be occurring and wants dealerships to review their processes.

In other words, this is not an enforcement action. It is a formal notice of expectations.

The FTC outlined six examples of pricing behavior it considers illegal in vehicle advertising. The agency says dealers should avoid:

None of these points will surprise experienced operators. They are long-standing principles tied to the FTC Act’s prohibition against deceptive practices.

For most stores, this is less about changing the business model and more about making sure marketing, pricing, and the in-store process are aligned.

Customers today often encounter dealerships through digital listings, paid ads, social media, and third-party marketplaces before ever speaking to a salesperson.

If the number that brings them in does not match the real buying process, confidence can erode quickly.

That is why the FTC emphasized something very specific in its letter: dealerships should confirm that advertised prices and actual transaction prices match.

For dealers who already run disciplined operations, that guidance reinforces something many leaders already believe: transparency is not only a regulatory expectation. It is a competitive advantage.

The FTC has already pursued cases involving pricing transparency, financing disclosures, and undisclosed add-ons, which makes these warning letters part of a broader enforcement pattern.

The warning letters should be viewed within that broader context. Regulators are increasingly focused on ensuring that consumers can compare prices accurately across the market.

For dealers who compete honestly, that goal supports a healthier marketplace. When misleading advertising disappears, good operators win on reputation, service, and trust.

This is a good moment to conduct a careful review.

A quick audit should include:

This kind of internal review is not just about compliance. It is about protecting the customer experience from start to finish.

One of the points raised in today’s ASOTU conversation is that many customers simply do not know how the car-buying process works. People purchase vehicles infrequently. That lack of familiarity can create anxiety or skepticism before a customer ever walks through the door.

Record a 30-second video today explaining how pricing works at your dealership and what customers should expect when they arrive.

Post it where customers already find you:

Use a simple message: “At [Dealership Name], the price you see is the process we walk you through.”

Then record a few quick follow-ups answering real customer questions. In each video, say and write your store name for search visibility:

When headlines raise questions, silence leaves room for doubt. Dealers who show their process and explain it clearly build trust first.