The Price Is Right Until You Arrive
The Federal Trade Commission announced a settlement with Greenway Auto Group after alleging that the dealership advertised vehicle prices thousands of dollars below the amounts consumers actually paid. The FTC says Greenway inflated the price in more than 92% of transactions, adding mandatory fees, packages and penalties.
On average, the agency says, consumers paid more than $3,350 over the advertised price. That is not a “small print” problem. That is the price tag showing up at the dealership wearing a fake mustache.
Congratulations, You Won a Trip to the Finance Office
The FTC also alleges that Greenway mailed promotions telling recipients they had won thousands of dollars in cash prizes that could be collected at a dealership, even though the prizes were not real.
The settlement requires actual prices in advertising, bans specific misrepresentations and prohibits deceptive prize mailers. It also says mandatory charges cannot hide behind an advertised number that only exists long enough to get a customer through the door.
The Bottom Line
A car dealership can sell a vehicle, offer financing and explain fees. It does not need to turn the purchase into a game show where the grand prize is discovering the real price.
Source
Federal Trade Commission: Greenway Auto Group price-transparency settlement