On April 2, the FTC and the Maryland attorney general announced a proposed settlement with an automotive dealership group and its executives to resolve allegations that they systematically deceived consumers with falsely advertised low vehicle prices and unwanted add-on charges. The joint complaint, originally filed in December 2024 in the U.S. District Court for the Eastern District of Virginia, alleged that the dealership group advertised deceptively low prices and then charged most consumers hundreds or thousands of dollars more at the dealership. According to the complaint, the dealership group often claimed consumers did not qualify for previously undisclosed rebates and incentives included in the advertised price and further told consumers they had to finance through the dealership rather than using their own financing, including military consumers with credit union financing. The agencies further alleged the dealership group charged consumers for add-on products, such as extra service plans and guaranteed asset protection, that consumers did not agree to buy.

Under the proposed stipulated order, affected consumers, who the agencies assert were charged a total of more than $75 million between April 1, 2020, and December 31, 2025, may be eligible for full refunds, and the dealership group must pay a $3.1 million civil penalty to the Maryland attorney general’s office. The proposed order permanently prohibits the dealership group from misrepresenting the costs or terms of purchasing, financing or leasing a vehicle, and requires it to clearly and conspicuously disclose the total price in any advertisement. The dealership group must also obtain consumers’ express, informed consent before charging for any product or service.