The Federal Trade Commission’s scrutiny of auto dealer advertising practices continues to evolve following the National Automobile Dealers Association’s April 17 webinar featuring FTC Chairman Andrew Ferguson and Bureau of Consumer Protection Director Chris Mufarrige. Since that discussion, additional commentary, tradepress analysis, and legal assessments have helped further clarify where the agency is headed—and what dealers should expect next.
Warning Letters Were a Beginning, Not the End
The FTC’s March mailing of advertising warning letters to 97 dealer groups drew widespread attention, but postwebinar reporting makes clear that the agency views those letters as an opening step, not a standalone action. Legal observers and compliance professionals have consistently noted that warning letters historically precede followup investigations or enforcement actions if practices do not change. In other words, the FTC’s recent outreach should be viewed as part of a broader enforcement pipeline rather than a onetime compliance reminder.
This approach has taken on added significance after the Fifth Circuit’s decision vacating the FTC’s CARS Rule. While that rulemaking effort has stalled, the FTC has underscored—both during and after the NADA webinar—that it intends to pursue many of the same principles through casebycase enforcement under existing law.
“Total Price” Advertising Is Now the Core Expectation
Since the NADA webinar, one theme stands out: the FTC believes the governing advertising standard is settled. The agency’s position is that the most prominent price in any advertisement must represent the total price available to consumers, inclusive of all mandatory dealer fees. Only legitimate government charges such as taxes may be excluded.
Industry representatives analyzing the webinar have noted that while the FTC articulated this principle clearly, questions remain about how it applies in edge cases involving conditional rebates, financedependent pricing, featured online pricing tools, and addon disclosures. Many dealers continue to look for more specificity, particularly around how to advertise optional products or incentives without creating the impression of a lower “headline” price that most consumers cannot obtain.
The FTC has acknowledged this uncertainty and indicated that a written FAQ document is forthcoming. Until that guidance is released, however, dealers remain responsible for evaluating whether their current advertising accurately reflects the price a typical consumer can expect to pay.
A Notable Shift: Calling on Dealers to Report Noncompliance
Perhaps the most widely discussed development since April 17 is the FTC’s explicit encouragement for compliant dealers to report competitors they believe are engaging in deceptive practices. During and after the webinar, Director Mufarrige emphasized that misleading advertising does not only harm consumers—it also disadvantages dealers who are attempting to advertise transparently.
This message has been interpreted by many observers as a signal that the FTC is seeking to amplify enforcement through marketplace awareness and peer reporting. While opinions differ on whether this approach will materially change industry behavior, it reinforces the agency’s view that deceptive pricing practices undermine fair competition across local markets.
Continued Enforcement, Including at the State Level
Recent settlements involving dealership groups—often pursued jointly by the FTC and state attorneys general—have reinforced the agency’s enforcement posture. These cases typically focus on low advertised prices followed by mandatory fees or addons disclosed late in the transaction process. Importantly, the remedies imposed in these matters mirror many of the same concepts discussed during the April 17 webinar, including clear disclosure of total vehicle price and express consumer consent for additional charges.
Practical Considerations for Dealers
Taken together, developments since April 17 point to a consistent message: advertising compliance expectations are unlikely to soften in the near term. Dealers should carefully review whether their advertised prices reflect the true, allin amount required to purchase a vehicle, assess how incentives and fees are presented across platforms, and document internal compliance efforts.
While further clarification from the FTC is anticipated, the agency’s recent actions suggest that transparency and consistency—rather than creative pricing structures—remain the safest path forward for dealers navigating this heightened enforcement environment.
Download Bulletin PDF