FTC Publishes Reports on Auto Sales Practices

On July 30, 2020, the FTC announced two new staff reports which highlight some of the alleged challenges and confusion consumers claim they face in buying and financing a car, particularly relating to charges for add-on items after the initial price negotiation.

In its summary, the Commission staff says that it expects to continue to focus on law enforcement and alleged deceptive or unfair tactics in the auto industry as they arise, bringing cases against dealers as appropriate. In addition to advertising practices, topics that the FTC will further investigate include the length and complexity of the auto transaction, ancillary or add-on products, alleged “yo-yo” financing tactics, GPS tracking capabilities, and other issues raised by consumer complaints.

The FTC announcement and reports can be found below.

FTC Announces Staff Reports on Car Buying and Financing Experience, Results of Auto Buyers Study

Buckle Up: Navigating Auto Sales and Financing

The Auto Buyer Study: Lessons from In-Depth Consumer Interviews and Related Research