by Stephen Rivers
- FTC warned 97 dealership groups over advertising practices it considers illegal.
- Dealers, not listing sites, remain responsible for vehicle pricing advertisements.
- Major marketplaces are changing pricing displays as scrutiny intensifies.
The FTC is turning up the heat on dealers, and now, third-party listing platforms are taking notice. After the commission sent out warning letters to 97 dealer groups, big names like Autotrader, Cars.com, and more are modifying the way they show pricing. While these sites aren’t responsible for the pricing itself, the move indicates a broader shift in the way customers get information on the cars they’re interested in buying.
Back in March, the FTC sent warning letters to 97 dealership groups, putting them on notice over six advertising practices the agency considers illegal. Among them were advertising vehicles that aren’t actually available and displaying prices that omit mandatory dealership fees.
Also: The FTC Finally Named All 97 Dealers It Warned Over ‘Deceptive’ Pricing
According to the FTC, advertised prices must include all dealer-imposed charges except government taxes and fees, and can’t depend on financing through the dealership, making a large down payment, or qualifying for rebates that aren’t universally available.
The warning letters are significant because they don’t just target individual retailers. FTC Bureau of Consumer Protection Director Christopher Mufarrige made it clear during an April webinar hosted by the National Automobile Dealers Association that the agency wants the entire industry paying attention. “If you can control what’s in the ad, then you’re responsible for it,” Mufarrige said.
According to Auto News, Cars.com, TrueCar, CarGurus, Carfax, and Autotrader have all announced new tools or updated displays designed to better highlight all-in pricing and itemized fees. Some platforms are making total prices more prominent, while others are introducing badges that identify listings where dealer fees are already included. These changes are no doubt positive for the consumer.
Read: FTC Sues Uber For Putting Consumers Through Cancellation Hell
Additional transparency in pricing means fewer bait and switch techniques where the price is one thing online and a different one when at the negotiating table inside the dealership. While these third-party listing sites might not be under the exact same scrutiny as dealers themselves, running afoul of the FTC can get expensive fast. A single violation of policy here can mean penalties in excess of $53,000.
Photos Cars.com / Long Cadillac
