The FTC Warned 97 Dealer Groups in March 2026: What It Means for Your Quote
On March 13, 2026 the FTC told 97 dealer groups an advertised car price must include every mandatory fee. The six practices it named, and how to use them.
On March 13, 2026, the Federal Trade Commission sent warning letters to 97 auto dealership groups. The message: an advertised car price has to be the price a buyer actually pays, including every mandatory fee except government charges such as taxes (FTC press release; Carscoops). The letters are warnings, not findings, and the FTC did not say any dealer broke the law. For a buyer, they are a clear federal statement you can quote back when a quote comes in higher than the ad.
01What the FTC said
The press release lists six practices the letters flag:
- Advertising a price that does not reflect all required fees
- Advertising a price that reflects rebates or discounts not available to all consumers
- Advertising a price that ignores an additional required down payment
- Conditioning the advertised price on using dealer financing
- Requiring consumers to buy additional items not reflected in the advertised price
- Advertising unavailable or non-existent vehicles
The FTC said it will act as needed to ensure compliance with the FTC Act and the other rules it enforces. Law firm Sheppard Mullin reads the letters as resting on Section 5 of the FTC Act, the general ban on deceptive practices. The FTC posts the template letter on its site.
02What the letters do not do
They do not ban dealer fees. A dealer can still charge a doc fee or sell add-ons. The letters are about advertising: a fee the buyer must pay has to be inside the advertised price.
They do not bring back the CARS Rule. The FTC's 2024 vehicle-shopping rule was vacated by the Fifth Circuit on January 27, 2025, on procedural grounds. These letters rely on the FTC Act, not that rule.
They do not name a public list of offenders. The FTC did not publish a list of the 97 groups in the release, and Carscoops reports they were picked using nonpublic criteria. A dealer not getting a letter does not mean its ads are clean.
03What it means on a real quote
Map the six practices to what shows up in your inbox:
| You see | Which practice it matches |
|---|---|
| A "dealer fee" or doc fee added on top of the ad price | 1. Required fees left out of the price |
| A price that only works with a loyalty, military or recent-grad rebate | 2. Discounts not available to all |
| A price that assumes thousands down | 3. Required down payment left out |
| "That price is with our financing" | 4. Price conditioned on dealer financing |
| A mandatory add-on package, nitrogen, etch or tint | 5. Required items not in the price |
| The advertised car "just sold," but a pricier one is available | 6. Unavailable vehicles |
Taxes, title and registration are government charges. Expect those on top of the ad price. Everything a dealer adds on its own is fair game to question.
04How to use this when you shop
Save the ad first. Screenshot the price, the fine print and the date. Ads change.
Ask for the advertised price as an out-the-door quote. In writing, itemized: the advertised price, then only tax, title and registration. See out-the-door price for what belongs on it.
Name the gap, calmly. "Your ad shows $X. This quote adds a $Y dealer fee and a $Z package that were not in the advertised price. Please re-quote at the advertised price." No threats needed.
Report it if it is not fixed. The FTC takes reports at ReportFraud.ftc.gov. Your state attorney general takes them too.
05State law may go further
Some states already require it. In Florida, section 501.976(16) says an advertised vehicle price must include all fees the customer must pay, leaving out only taxes, tags, registration and title. More in our Florida dealer doc fee guide. For the fees themselves, see the 7 junk fees on every car deal and the dealer nitrogen tire fee.
Want the gap closed for you? Start a brief. Motrix gets itemized quotes from dealers in writing and pushes back on every fee. Deal and Pro: $0 until you sign.
06Questions buyers ask
Did the FTC ban dealer fees in 2026?
No. The March 13, 2026 letters are about advertising: a fee the buyer must pay has to be included in the advertised price. Dealers can still charge fees.
Is the FTC CARS Rule in effect?
No. The Fifth Circuit vacated it on January 27, 2025. The 2026 warning letters rely on the FTC Act instead.
Which dealers got FTC warning letters?
The FTC said 97 auto dealership groups nationwide but did not list them in its press release. The letters do not conclude that any dealer broke the law.
What can I do if a dealer quote is higher than the advertised price?
Save the ad, ask in writing for the advertised price plus only tax, title and registration, and ask for each added line to be removed. If it is not fixed, report it at ReportFraud.ftc.gov and to your state attorney general.