You are being told, in no uncertain terms, that the price you see in a car ad has to be the price you can actually pay. The Federal Trade Commission is pushing that message directly to dealers, and if they ignore it, you are the one who can help drag them into court. Even as one major rule has been knocked down, the agency is sharpening other tools to go after fake prices, junk fees, and bait-and-switch tactics.

How you got here: from big rule to courtroom fight

You are shopping for a car at a time when regulators and dealers are still fighting over the basic rules of the game. The Federal Trade Commission created the Combating Auto Retail Scams Trade Regulation Rule, known as the CARS Rule, to set nationwide standards for how dealers treat you in the showroom and online. The Rule was supposed to target the tricks that make a 2024 Honda CR-V or a 2023 Ford F-150 look cheaper in the ad than on the sales contract.

That plan hit a wall when the Court of Appeals for the Fifth Circuit stepped in. The court vacated the Federal Trade Commission’s Rule on auto retail scams, wiping out the CARS Rule before it could fully take effect, according to a detailed account of the Fifth Circuit decision. As of April, the Federal Trade Commission had not filed a petition for a writ of certiorari to appeal the Fifth Cir ruling, a status update confirmed in an update on the.

Before that setback, the CARS Rule for new car dealers had been scheduled to take effect in late July and was designed to require greater transparency, including clear disclosures and limits on junk fees, as described in an overview of CARS Rule for. Even though the court blocked that approach, the Federal Trade Commission has not stepped back from the basic goal: making sure you see the real price and are not tricked into paying more.

The new front line: 97 dealer groups on notice

Instead of relying only on broad rulemaking, you now see the Federal Trade Commission turning directly to individual dealers. The agency is sending warning letters to 97 auto groups nationwide, telling them that the prices they advertise must be the ones you can actually pay. The Federal Trade Commission framed the move as a way to protect you and to ensure dealers are transparently competing on price, according to its own announcement about 97.

Those letters are not just polite reminders. They are a warning that if a dealer keeps advertising a low price and then pads it with mandatory add-ons or fine-print fees, the Federal Trade Commission can treat that as a deceptive act. You are being told that the ad price must include all required charges that every buyer has to pay, not just the base sticker that looks good on a billboard.

The agency has also described the specific tricks it is watching. That includes advertising a price that does not reflect all required fees and advertising a price that reflects rebates or discounts not available to all consumers, according to the Federal Trade Commission’s own breakdown of problematic pricing tactics. If you see a television ad that shows a rock-bottom payment but only if you are a recent college graduate, a member of the military, and a returning lessee all at once, that is exactly the kind of fine print the agency is flagging.

What counts as a deceptive car price

You do not have to guess whether a dealer is crossing the line. The Federal Trade Commission has spelled out several patterns that can put a dealer in trouble and leave you paying more than you expected.

Earlier guidance on the CARS Rule explained that the Federal Trade Commission wanted dealers to present a single “offering price” that included all unavoidable charges, so you could compare a 2025 Toyota Camry at one store with a similar car across town on equal terms. Even though the court blocked that specific rule, the agency’s enforcement letters show that the underlying principle still guides its approach.

In other words, if the ad for a 2024 Subaru Outback says $29,995, you should be able to walk in and buy that vehicle for that price plus taxes and government fees. When the dealer suddenly insists on a $2,000 “market adjustment” or a $1,500 “appearance package” that you never asked for, you are looking at the kind of conduct the Federal Trade Commission is now spotlighting.

Why the court fight does not end enforcement

You might assume that once the Court of Appeals for the Fifth Circuit vacated the CARS Rule, the Federal Trade Commission lost its leverage. The reality is more complicated. The agency still has broad authority to police unfair or deceptive acts, and the letters to 97 auto groups show that it is ready to use traditional enforcement tools even without a new trade regulation rule in place.

The Fifth Cir ruling, as summarized in the earlier background on the, focused on how the Federal Trade Commission handled the rulemaking process. It did not give dealers a free pass to mislead you. As of April, the Federal Trade Commission had not pursued Supreme Court review, but it has pivoted to case-by-case oversight along with public warnings that put the industry on notice.

For you, that means the legal landscape is messy, yet the basic message is clear. Dealers that keep using the same tricks that inspired the CARS Rule now risk direct investigations, lawsuits, and settlements that can cost them millions and force changes in how they advertise to you.

How you can spot and challenge a shady deal

You are not just a passive bystander in this crackdown. The Federal Trade Commission’s own consumer guidance tells you how to raise your hand when a dealer crosses the line. If you see one price online and a higher price in the finance office, you should document everything. Save screenshots of the ad, take photos of window stickers on the lot, and keep copies of text messages or emails from sales staff.

When you are ready to speak up, you can file a complaint directly with the Federal Trade Commission. The agency explains that to file a complaint, you just go to ftc.gov/complaint and answer the questions, or call the phone number listed in its own guide on how to file. That process feeds into the same enforcement pipeline that produced the warning letters to dealers.

You can also report problems through the Federal Trade Commission’s broader fraud reporting portal at reportfraud.ftc.gov. If a dealer’s conduct spills into identity theft, such as running your credit without permission or mishandling your personal information, you can use the dedicated tools at identitytheft.gov. These sites channel your experience into data that helps regulators spot patterns, build cases, and, in some situations, return money to buyers who were overcharged.

Why honest dealers should care as much as you do

You might assume this is a simple story of regulators versus business, but if you own or work at a dealership that tries to play fair, you have a lot at stake too. When a rival advertises a 2024 Chevrolet Equinox at an impossibly low price by hiding fees in the fine print, that competitor is not just lying to shoppers. It is also undercutting you in a way that honest pricing cannot match.

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