Business & Finance
Federal and state regulators target deceptive car dealership pricing
Despite the formal withdrawal of the FTC's CARS Rule, regulators continue to crack down on bait-and-switch advertising and hidden dealer fees.
The short version
- The Federal Trade Commission (FTC) has sent 97 warning letters in 2026 to car dealerships over deceptive pricing practices, asserting that advertised prices must include all mandatory dealer fees.
- The regulatory actions follow the formal withdrawal of the FTC's 'CARS Rule' in 2026, which was vacated by the Fifth Circuit in 2025.
- Legal experts advise consumers to obtain an itemized "out-the-door" price in writing before signing and to report deceptive practices to state attorneys general and the FTC.
Key facts
- The FTC's CARS Rule, designed to ban bait-and-switch pricing and hidden dealer fees, was vacated by the Fifth Circuit in 2025 and formally withdrawn in 2026.[Jalopnik]
- Deceptive vehicle advertising remains illegal under Section 5 of the FTC Act and state consumer protection laws.[Jalopnik]
- The FTC has issued 97 warning letters to various dealerships in 2026 regarding deceptive pricing practices.[Jalopnik]
- Recent enforcement actions include a 2024 joint charge by the FTC and Maryland's attorney general against Lindsay Auto Group, and an August 2026 settlement with a Nissan dealer in Connecticut.[Jalopnik]