FTC Crackdown on Deceptive Pricing Practices What This Means for Auto Dealers By BARRETT “BARRIE” CHARAPP BEATY, Dealer Franchise Law Specialist, Charapp & Weiss LLP On Aug. 19, 2026, the Federal Trade Commission (FTC) and the State of Connecticut secured a $4 million settlement with Chase Nissan LLC, along with its owners and managers, including general, sales and finance managers, resolving allegations of deceptive and unfair practices in the advertising; marketing; promotion; offering for sale, lease or financing; and the sale, lease or financing of motor vehicles. The FTC and Connecticut sued for deceptive and unfair practices in violation of the FTC Act and the Connecticut Unfair Trade Practices Act (CUTPA). The FTC alleged that the dealership did not honor their advertised prices, double-charged consumers for the cost to certify vehicles they had already advertised as certified, charged consumers for add-ons the consumer either did not know about or authorize, and lied about the amount of mandatory state registration and other fees consumers must pay. This ruling is not an isolated incident. The FTC has pursued similar cases across the country over the past few years. The stipulated consent order not only provides for monetary compensation be paid to the state of Connecticut for restitution and redress, but the Defendants are “permanently restrained and enjoined from misrepresenting, expressly or by implication,” “permanently restrained and enjoined from charging a consumer without having obtained the consumer’s Express, Informed Consent,” and “permanently restrained and enjoined from representing, expressly or by implication, any information relating to any amount a consumer may pay to purchase, finance, or lease a motor vehicle without disclosing the Total Price, Clearly and Conspicuously, as the most prominently displayed item in any visual disclosure.” While many previous settlements with the FTC include owners and general managers, this order is unique in that it also includes sales and finance managers. Each individual defendant will be required to make disclosures to the FTC in that individual’s title or role in any business activity related to selling and financing vehicles for the next six years. THE 97 WARNING LETTERS AND FTC FAQS ISSUED The most recent FTC settlement with Chase Nissan LLC aligns with the intent of the FTC’s warning letters sent to 97 dealership groups nationwide back in March 2026. The letters highlighted six deceptive practices that are in violation of Section 5 of the FTC Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.” 1. Advertising a price that does not reflect all required fees. The advertised price must be the total price the consumer is expected to pay, excluding only government fees such as tags, title and taxes. 2. Advertising a price that reflects rebates or discounts not available to all consumers. Conditional rebates and discounts cannot be built into the advertised price if not every buyer qualifies. Including a disclaimer will NOT solve this issue, contrary to popular belief. 3. Advertising a price that fails to take into account the amount of an additional required down payment. 4. Conditioning the advertised price on consumers using dealer financing. The advertised price must be available to cash buyers and to customers using outside financing, not only to those who finance through the dealership. 5. Requiring consumers to buy additional items not reflected in the advertised price. If a consumer must buy an add-on to get the advertised price, that add-on belongs in the price. 6. Advertising unavailable or non-existent vehicles. On Sept. 15, 2026, the FTC finally published the long-awaited “Automobile Industry Pricing Transparency: FAQs.” The FTC’s Christopher Mufarrige had promised that FAQs would be forthcoming back in April 2026 during the webinar hosted by the NADA, which was in response to those 97 warning letters. Within the document, the FTC addressed 14 “common questions.” We highly suggest that you scan the QR code and take a look at the actual publication. Though much of the publication’s answers have 6 Virginia Auto Dealer
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