LOS ANGELES - APRIL 24: (Photo by David McNew/Getty Images)
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It’s the old bait-and-switch, and dealers are experts at it.
A car shopper sees a vehicle online at a great price, clicks, calls or drives over and then learns the car is gone, was never really available on those terms, or has somehow transformed into a different deal entirely by the time paperwork appears. Whatever the reason, it adds up to aggravation.
On March 13, the FTC sent warning letters to 97 auto dealership groups around the country, telling them to review their advertising and pricing practices. Among the agency’s concerns was a simple one that any car shopper can understand immediately - dealers should not be advertising unavailable or non-existent vehicles.
The commission also warned against listing prices that do not include mandatory fees, advertising rebates not everyone can actually get, and pushing deals that depend on financing terms or add-ons not clearly disclosed up front. This inevitably results in a more expensive car, a different trim, a different payment structure or a stack of extras.
Businessman with short brown hair and glasses is giving the keys to a female customer with long brown hair,both smiling at each other,woman with blond hair standing in the front,indoors at a car dealership in the evening
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The FTC’s current focus also includes dealers that fail to remove listings quickly after a vehicle has been sold, even though the agency has not laid out an exact deadline for how fast that needs to happen.
But basically, if a dealer keeps a sold car online long enough to lure in traffic, regulators may decide that’s deception.
There has been pushback, though.
The FTC’s broader CARS Rule, a Biden-era regulation meant to crack down on bait-and-switch tactics and junk fees, was thrown out by the Fifth Circuit in January 2025 “on procedural grounds.” The FTC then formally withdrew the rule in February 2026. But that’s not awful news - it’s the FTC saying that even without the CARS Rule, dealers can still get in trouble for deceptive advertising.
This week, the FTC and the Maryland Attorney General announced a settlement with Lindsay Automotive Group, alleging that the company advertised falsely low prices and then hit buyers with mandatory fees and unwanted add-ons that raised what they paid by thousands of dollars. According to the FTC, consumers charged more than $75 million between April 2020 and December 2025 may be eligible for refunds, while the group will also pay a $3.1 million civil penalty to Maryland.
If you’re shopping for a new car, information is essential to get the best deal you can. Take the time to find out if that great online deal even exists, because it may not. And to dealers, the message is clear – take down the ad if that’s the case, or pay the literal price.
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