The Federal Trade Commission has sent warning letters to 97 auto dealership groups across the country, demanding they follow federal rules on transparent pricing. The letters, issued by the FTC’s Bureau of Consumer Protection under the Trump-Vance administration, target dealers that advertise artificially low prices and then add required fees later in the purchase process.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, summed up the agency’s stance: “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.”
The letters spell out specific pricing practices the agency calls unlawful and that dealers must stop. They include:
– Advertising a price that omits mandatory fees the buyer must pay.
– Promoting rebates or discounts that are not available to all consumers.
– Failing to disclose required down payment amounts when presenting an advertised price.
– Conditioning advertised prices on the buyer using dealer financing.
– Requiring consumers to purchase add-ons that are not included in the advertised price.
– Advertising vehicles that are not available or do not exist.
The FTC said enforcement actions are already pending against three dealer groups accused of one or more of these practices.
This campaign is part of a wider FTC push for price transparency across multiple markets, including auto sales and leasing, rental housing, ticketing, hotels, and grocery and delivery services. The commission said it will continue monitoring dealerships to promote clear, competitive pricing for consumers.
Source: http://www.wardsauto.com/news/ftc-warns-97-auto-dealership-groups-about-deceptive-pricing/814730/
