Anyone who has seen a dealership ad with a price that seemed too good has probably wondered where the catch was. The Federal Trade Commission now has an answer for one dealer group. On October 8 it announced a settlement with Greenway Auto Group, which it calls a win for price transparency, and the complaint behind it shows how car dealer fees can pile up between an advertised price and a signed contract. Below: what the FTC alleges, what the order would require, and five checks to run before you sign.
What the FTC says Greenway did
According to the FTC’s announcement, Greenway advertised vehicle prices thousands of dollars below what it actually charged. The complaint alleges that the company charged more than $3,350 on average above the advertised price in over 92 percent of its transactions. The added charges included administrative fees, dealer fees, delivery fees and processing fees that buyers had to pay.
The FTC also alleges that some advertised prices counted rebates and discounts that only a subset of customers could get. And it says Greenway sent mailers telling recipients they had won thousands of dollars in cash prizes that could be collected at a dealership, prizes the agency says weren’t real.
One detail stands out. The FTC says it sent Greenway a warning letter in March telling it that the price consumers see in advertising has to be the price they actually pay. After that, the complaint alleges, Greenway added assurances of price transparency to its websites while it kept advertising prices thousands below the real ones. The FTC calls those assurances false in its complaint.
Nothing here is a finding of liability. Greenway settled, and the FTC filed a complaint together with a stipulated final order. Such orders carry the force of law once a federal judge in the Middle District of Florida approves and signs them. The Commission voted 2-0 to authorize the filing.
What the settlement would require
If the court signs the order, the terms on car dealer fees and advertising are specific. Greenway’s price advertisements must prominently include the actual price a consumer has to pay for a vehicle, and the only charges it may leave out are those the government requires consumers to pay. The company can’t send deceptive prize mailers. It also can’t misrepresent whether a charge, fee, tax, product or service is optional or required, and it can’t misrepresent whether any type or source of financing is required.
The FTC’s page doesn’t state a civil penalty or refund amount, and it doesn’t describe the order’s length or reporting requirements, so those details remain unknown from the announcement itself. Christopher Mufarrige, who directs the FTC’s Bureau of Consumer Protection, said in the release that consumers can’t make informed choices when the actual price is hidden, and that price transparency is a top priority for the agency.
Why car dealer fees draw FTC attention
Greenway isn’t the only group on the FTC’s radar over car dealer fees. In March the agency sent warning letters to 97 auto dealership groups, according to a U.S. PIRG Education Fund summary of the FTC’s announcement. The practices it flagged will sound familiar to anyone who has shopped for a car: ads that leave out mandatory fees, advertised prices that require dealer financing, add-ons nobody mentioned in the ad, discounts most buyers can’t qualify for, and bigger down payments than advertised.
There is also a gap in the federal rulebook. PIRG notes that the FTC’s Junk Fees Rule, which took effect May 12, 2025, focuses on hotels and live-event tickets, so auto sales aren’t covered. A separate FTC rule written for car shopping was vacated by a federal appeals court in January 2025 on procedural grounds, according to the same summary. The FTC is relying instead on its general authority over unfair or deceptive practices. California’s own car-buying law takes effect on October 1, 2026, which PIRG also points out.
Five checks on car dealer fees before you sign
None of these steps for avoiding surprise car dealer fees is new, and none is a legal guarantee. They come from the FTC’s own consumer advice, and they map neatly onto what the Greenway complaint describes.
First, ask for the out-the-door price in writing before you visit. The FTC’s guidance on car dealer ads says to contact the dealer to confirm the vehicle is on the lot and to get the total price, including every fee, in writing. Get your trade-in quote separately.
Second, find out who qualifies for the advertised discount. The FTC says to look for restrictions in the fine print, such as being a current lessee, a recent graduate or a member of a particular bank. A rebate that applies to a fraction of buyers isn’t a price you can count on.
Third, get a loan quote before you shop. The FTC suggests getting pre-approved, which gives you a benchmark and more bargaining power in the finance office. With rates in motion, as our report on the latest inflation data and Fed rate-hike odds explains, a bank or credit union quote is worth having in hand when the dealer’s offer arrives.
Fourth, read the paperwork against what you agreed to. The FTC’s 2024 consumer alert on add-ons says to ask for a printed copy of the sales contract and financing agreement, since some buyers signed on devices that showed only where to put their signature. If an add-on turns up that you never asked for, tell the dealer to take it off and make sure the final contract reflects that. The same alert says as many as 75 percent of buyers at one dealer group in an FTC case reported add-ons on their contracts.
Fifth, be ready to walk. If the car isn’t available or the dealer won’t honor the quoted price, the FTC’s advice is to leave. If you think a dealer broke the law, report it at ReportFraud.ftc.gov.
What to watch next
Watch whether the judge approves the order and whether the FTC follows the 97 warning letters with more cases. The FTC’s release ties Greenway to its March warning letter, so this may not be the last case. If more dealers settle, ads that show the real price, with car dealer fees included, could become easier to find. If not, the checks above are still the best defense a buyer has. Fuel already makes a vehicle expensive to run, as our gas price report shows, so a few thousand dollars in surprise fees changes the math on a purchase.
One caution: this is general information about a pending case and common shopping steps, not financial or legal advice.
Editor’s take
The headline number in the Greenway complaint is $3,350, but the more telling detail is the 92 percent. Car dealer fees that show up in nearly every transaction aren’t a surprise, they’re a pricing strategy, and the advertised number is just the bait. The settlement is a reasonable step because it forces the real price into the ad itself, but it covers one dealer group, and it’s still a proposed order. For buyers, the practical lesson is to treat any price that isn’t “out the door” as unfinished. Ask for the total in writing and let the dealer win your business on that number.
