|
EMERGENCY UPDATE: FTC TAKES ACTION ON DEALER PRICE TRANSPARENCY
As we've been warning you, it was only a matter of time before the FTC made an example of someone for not following its March 2026 guidance on price transparency.
Now, the FTC has acted, announcing a settlement with a dealer group over its advertising and pricing practices.
The FTC made its position clear:
“Consumers can’t make informed choices when the actual price is hidden. Price transparency is critical to a properly functioning market and is a top priority for the Trump FTC.”
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, added:
“Truthful advertising in the auto industry is vital because purchasing a car is one of the most significant financial decisions consumers make.”
The settlement is about more than changing an advertisement.
The proposed order puts the dealer group under years of ongoing compliance obligations. Among other requirements, the dealers must:
-
Maintain extensive advertising, deal and compliance records for five years, including certain advertisements, deal worksheets, consumer complaints, sales scripts and training materials.
-
Maintain detailed advertising records, including advertised prices, dates, disclaimers and monthly representative examples from each marketing channel.
-
Distribute the order to certain officers, managers, employees and others and obtain signed acknowledgments for five years.
- Submit a detailed compliance report to the FTC after one year, under penalty of perjury.
-
Report certain business and compliance-related changes to the FTC for 10 years.
- Cooperate with ongoing FTC compliance monitoring, including requests for records, sworn reports, depositions and employee interviews.
And here's one every dealer should pay attention to:
The order expressly allows the FTC to monitor compliance by posing as consumers without identifying themselves or providing advance notice.
This is why we've been telling dealers that the FTC's March guidance needs to be taken seriously. The warning period is over. Enforcement has begun.
Don't wait until your dealership is the next example.
Let Ignite help you bring your website, advertising and practices in line.
Reach out to us TODAY and let's get started. info@ignitecp.com
| 
