Author: Anthony Olivieri
Date: 7/9/2026
The automotive industry has entered a new era—one where compliance is no longer a defensive exercise, but a growth strategy. What was once considered a nuisance or a topic to avoid can be viewed as an opportunity to reinforce a strong culture and differentiate. Dealers who view compliance as an obstacle are likely to struggle internally while putting their dealerships at risk of audits and fines.
Recent enforcement activity, including the issuance of 97 warning letters across the industry, has fundamentally changed how dealerships must operate. The message is clear: enforcement is active, visible, and expanding.
In March 2026, the Federal Trade Commission (FTC) issued warning letters to 97 auto dealership groups nationwide, covering more than 200 individual dealership locations. The letters were part of the FTC’s ongoing effort to ensure price transparency in the automotive industry and prevent misleading advertising practices. Dealers were not fined, but the letters serve as a formal warning that further enforcement could follow if deceptive practices continue.
The enforcement actions go far beyond the individual dealers who received letters. They served as a broader industry signal. Awareness alone creates exposure, and continuing questionable practices is increasingly difficult to defend.
Compliance cannot be outsourced. While vendors and OEMs influence advertising and pricing strategy, the dealer ultimately approves every message. Regulators may look at all contributors—but accountability rests with the dealership.
The biggest concern from the FTC standpoint is: does the online price reflect what a customer would pay when they walked into the dealership? The rise of digital retailing has driven the growth of third-party online auto marketing sites as well as dealerships promoting their own inventory online. Discrepancies in pricing and disclosures across sites compared with what is quoted at the dealership prompt negative customer feedback and complaints.
When these complaints filter up to regulatory and government entities, state attorneys general get involved. Dealers who fail to consistently monitor all pricing sites as well as any complaints posted put themselves at risk. Dealers must maintain a documented approval process, ensure claims are substantiated, and align all listings with in-store reality.
There is an old adage in automotive retailing that says, “If I put my actual price, addendums, and disclosures online, the competition will undercut me and get the sale.” This outdated behavior not only deceives the customer, but it also creates false competition in the marketplace. In reality, transparency delivers greater benefits, including trust and greater sales volume. Reaffirming a culture of compliance adds to those benefits.
Transparency is more than a motto posted on the wall. Under state and federal regulations regarding Unfair and Deceptive Pricing, dealerships must provide or employ:
Full Price Disclosure: Show the total price (including all mandatory fees) before the sale or service begins
No Misleading Tactics: Avoid hidden fees, dynamic pricing that changes without notice, or “bait-and-switch” offers
Clear and Conspicuous Language: Use plain language and visible placement for pricing and fee information
Materiality: Only include information that would influence a reasonable consumer’s decision
Avoid Harmful Practices: Ensure pricing does not cause or is not likely to cause substantial, avoidable harm to consumers
Dealers aligning with compliance expectations are improving trust and increasing unit movement. Transparency reduces friction and accelerates purchasing decisions, creating preference for the ‘trustworthy’ dealership.
Federal and state regulatory authorities are expected to expand scrutiny across dealers, OEMs, vendors, and brokers. Building an action plan to make compliance work for you is the first step.
Action Plan
1. Build a defensible advertising process
2. Align marketing with inventory and operations – and check it monthly
3. Reevaluate vendor partnerships
4. Train teams on compliance culture
5. Use transparency to differentiate
Bottom Line
Compliance is no longer just about avoiding risk. It is about building trust, improving customer experience, and driving sustainable dealership growth. EFG arms its dealers with a toolkit of resources, classroom and online compliance training, and expert advice that addresses specific needs.
EFG Companies Common Sense Compliance delivers an actionable program that helps maximize client profitability while providing simple steps to significantly increase compliance standards across the entire dealership.
Turn compliance into a profit strategy and avoid expensive audits and fines.
