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Updated Nov. 18, 2026 – The advertised price on a new or used car looks great on a screen. But after adding dealer fees, delivery charges, "mandatory packages" and in-house processing costs, the number you actually pay can climb by thousands. A growing wave of federal and state enforcement actions is pressuring dealerships to be more upfront — and highlighting what shoppers can do before signing.
The latest case involves Greenway Auto Group. On Oct. 8, 2026, the Federal Trade Commission announced a proposed settlement with the Georgia-based dealership chain. In a complaint filed in federal court, the agency alleges that in more than 92% of the transactions it reviewed, customers were charged an average of over $3,350 more than the advertised price. The FTC also says Greenway mailed consumers notices suggesting they had won cash prizes that could be picked up at a dealership. Those allegations are not final findings, but the message is clear: regulators are scrutinizing how car prices are advertised and billed.
Greenway denied wrongdoing as part of the proposed consent agreement, but the settlement would impose new compliance requirements and monetary relief for consumers. The public will have a chance to comment before the FTC decides whether to make it final.
Greenway isn't alone. A separate case against Lindsay Automotive Group was pursued jointly by the FTC and Maryland authorities. The complaint alleges that 88% of customers in a sampled group of transactions paid more than the advertised price. Add-on products, dealer-installed options, and financing pressure are also cited.
In one example in the Lindsay complaint, a customer was allegedly told a warranty was "required" even though the product was optional. The FTC and Maryland claim some buyers were steered into higher-priced financing or charged fees that were not disclosed in advertising. Again, these are legal allegations, not proven violations in a court.
In 2024, the FTC finalized the Combating Auto Retail Scams (CARS) Rule, a sweeping regulation designed to stop add-on charges and hidden fees. But a federal appeals court vacated the rule in January 2025 on procedural grounds. The rule was later withdrawn, leaving the FTC without that specific tool.
That withdrawal did not legalize deceptive advertising. The FTC can still bring enforcement actions under the Federal Trade Commission Act, which prohibits unfair or deceptive acts.
In March 2026, the FTC sent warning letters to 97 dealership groups about potentially deceptive pricing practices. The concerns included mandatory fees excluded from advertised prices, conditional rebates that many customers wouldn't qualify for, and required add-ons that inflate the price.
Then in September 2026, the agency published guidance on price transparency. Its position: an advertised vehicle price should reflect the total amount a consumer can actually pay, excluding only government-imposed charges that consumers pay directly to the government. That means dealer fees, processing charges, and options — no matter how they're labeled — should be built into the displayed number.
State rules now go beyond federal guidance in some places. California's Combating Auto Retail Scams Act, Senate Bill 766, took effect Oct. 1, 2026. It creates strict rules for:
The law also gives buyers of qualifying used vehicles a limited cancellation right — often called a "cooling-off" period. But that right has conditions and exceptions. It doesn't apply to every used car purchase, and it doesn't apply outside California. For buyers in other states, protections still vary widely.
A dealer that advertises a full, honest price may appear more expensive than a competitor that excludes mandatory fees from its headline. That dynamic creates what economists call a "race to the bottom." Shoppers click the lowest number, and honest businesses lose sales even though their actual price may be the better deal.
It's not just consumers who get hurt. Legitimate dealers have to compete against tactics that exploit trust. That's why many industry associations have publicly supported clear pricing standards — though some dealer groups argue that mandatory full-price advertising could reduce their ability to offer local discounts or flexible financing.
Another issue regulators flagged is the focus on monthly payments rather than total cost. "It's only $15 a month" can sound painless, but over a 72-month loan, that extra $15 becomes $1,080 — before interest. Some add-on products carry even higher prices. Paint protection, extended warranties, VIN etching, and other extras can be valuable for some buyers. But they should be chosen, not pushed.
Consumers also need to understand the difference between taxes and dealer-based fees. Taxes are set by government. Fees like "dealer preparation" or "documentation" are not required by law in most states and can be negotiated. Even when a fee is non-negotiable, it must be disclosed before you're asked to sign.
Given the enforcement push, you don't have to wait for regulators to fight your corner. Here's a practical checklist to keep in mind during your next car purchase:
The FTC settlement with Greenway and the ongoing Lindsay case may send a signal. Additional enforcement actions are likely, especially after the September guidance gives the agency a clear framework for evaluating dealer ads.
California's SB 766 could also become a template for other states. Lawmakers in several states have introduced similar pricing transparency bills in the past session, according to industry watchers. That means dealers across the country may need to adapt even if formal enforcement is slow.
For consumers, the practical takeaway is simple: trust, but verify. The advertised price should be the starting point of a transparent transaction, not the opening number in a game of hide-and-seek. With regulators applying pressure and states tightening rules, the industry may slowly shift toward more honest pricing. But until then, the burden is on the buyer to ask the right questions and get everything in writing.
A car is a major investment. It's worth 20 minutes of due diligence to know exactly what you're paying — and why.
