October 21, 2026

By Barrie Charapp Beaty
Charapp & Weiss, LLP
bbeaty@cwattorneys.com

In the first enforcement action since the FTC’s FAQs, the Federal Trade Commission entered into a stipulated order in October 2026 with Greenway Automotive and related dealerships.

The complaint against Greenway alleges that the dealerships advertised vehicles online at prices thousands of dollars below the amounts consumers were ultimately required to pay. According to the FTC, the alleged increases resulted from:

1. Mandatory dealer-imposed fees;
2. Undisclosed eligibility conditions attached to rebates or discounts;
3. Required add-on packages omitted from the advertised price;
4. Inflated title, license, registration, or similar government charges; and
5. Unexplained increases to the vehicle price.

The FTC alleged that, among reviewed transactions involving vehicles advertised on certain third-party websites, more than 92% of consumers paid above the advertised price, with an average difference of at least $3,354 before required government charges and optional add-ons.

The complaint also alleges that consumers sometimes did not discover the higher price until they had spent substantial time communicating with or traveling to a dealership. Allegedly, consumers reviewed and signed documents on dealer-controlled electronic tablets and did not receive accessible copies of the transaction documents until later. The FTC further alleged that consumers who sought to leave were delayed through practices such as withholding trade-in keys, retaining deposits, or failing to complete unrelated paperwork.

One aspect of Greenway that was unique among enforcement actions was the fact that Greenway used fake mailers with fake prizes to get consumers into the dealerships. Mailers claimed that the consumer won a prize of $2,500, which they did not. Any dealers using sweepstakes mailers should seek counsel’s advice on compliance both federally and within the state in which they operate.

Dealer Fees Belong in the Advertised Price

In Greenway, the complaint alleges that several dealer fees were imposed on virtually every consumer but omitted from the advertised price. We have been writing about dealer fees for months, since the 97 warning letters were sent to dealers. A disclosure at the bottom of a webpage is not a substitute for incorporating a dealer fee into the displayed price, particularly when consumers must scroll through unrelated content to find the disclosure.

In the stipulated Greenway order, anyone affiliated with Greenway is “permanently restrained and enjoined from representing, expressly or by implication, any amount a consumer may pay to purchase, finance, or lease a motor vehicle without disclosing the Total Price, Clearly and Conspicuously, as the most prominently displayed item in any visual disclosure.” “Total Price” is defined as “the maximum total price, including all mandatory fees or charges a consumer must pay for a motor vehicle, except that charges a Federal, State, or local government agency, unit, or department requires the consumer to pay may be excluded.”

“Optional” Means the Consumer Can Decline It

The FTC alleged that consumers were required to purchase add-on packages costing thousands of dollars, even though the packages were not included in the prominently advertised price. According to the complaint, the dealerships represented that these packages were installed in advance, permanently associated with the vehicle, and incapable of removal.

A product is not optional merely because an advertisement or contract describes it that way. If a consumer cannot purchase the vehicle without the product, the charge is mandatory for pricing purposes.

Dealerships should ensure that:

1. Optional products can be declined for purchase or affirmatively selected by the consumer;
2. A price is not based on an “optional” product (i.e., the consumer only gets the price advertised if they also pay for the $2,500 add-on package that is not in the advertised price);
3. Preinstallation does not become a basis for forcing the consumer to buy an undisclosed package; and
4. The buyer’s order separately and accurately identifies each optional item.

Conditional Rebates

The Greenway complaint alleged that conditional rebates available only to select consumers, such as repeat customers, qualified servicemembers, or consumers using dealer-arranged financing, were included in advertised pricing. Upon learning that they were ineligible for those conditions, consumers were required to pay more than the advertised price.

The most prominent advertised price shall not include any conditional rebates. You can advertise those conditional rebates, but they shall not be in the most prominent price advertised.

Clear and Conspicuous Means Difficult to Miss

A qualifying disclosure must be easily noticeable and understandable to reasonable consumers. Visual disclosures must stand out based on size, contrast, placement, duration, and surrounding content; audible disclosures must be delivered at a sufficient volume, speed, and cadence.

The Greenway complaint alleges that, after receiving an FTC warning letter in March 2026, the defendants added prominent claims such as “all-in price,” “zero hidden fees,” and statements that all dealer fees were included. The FTC nevertheless alleged that consumers continued to receive quotes exceeding the advertised price because of dealer fees and mandatory packages. Using a transparency slogan that is not adhered to can increase risk when actual dealership practices do not match the representation.

Responsibility for Third-Party Advertisements

Dealers cannot treat third-party vehicle-listing platforms as separate from their compliance program. However, as we know from the FTC’s FAQs, third-party vendors can be just as liable if they “control” the advertisement.

Greenway’s stipulated order offers a roadmap to determine “control.” Essentially, Greenway does not violate the Total Price requirement merely because a third party displays the advertisement incorrectly if Greenway:

1. Provides the third party with the correct Total Price;
2. Requests that the Total Price be clearly, conspicuously, and most prominently displayed;
3. Does not contradict or undermine that request; and
4. Takes all steps within its control to ensure proper display.

What are some best practices in your dealership to avoid advertising price pitfalls?

Advertising and Price Approval

Before publication, each advertisement should be reviewed to confirm that:

1. The displayed price is available to consumers without an undisclosed qualification;
2. Every mandatory dealer fee and preinstalled product is included;
3. Conditional rebates are separated from the most prominent price;
4. Government charges are accurately described;
5. Inventory and availability representations are current; and
6. The price displayed by third parties matches the dealer’s approved price.

A Practical Pricing Standard

The most prominent advertised price should be the ceiling any consumer can pay to obtain the vehicle, excluding only accurately calculated government-required charges and genuinely consumer-selected options. That standard should apply consistently across the dealer’s website, third-party marketplaces, email and text communications, telephone quotes, showroom worksheets, buyer’s orders, finance documents, and promotional materials.