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FTC Accuses Auto Dealer Group of Charging Buyers Thousands Above Advertised Prices

A customer reviews vehicle purchase documents with a salesperson at a car dealership as federal regulators target allegedly deceptive pricing practices.
A customer reviews vehicle purchase documents with a salesperson at a car dealership as federal regulators target allegedly deceptive pricing practices. (Photo: Readovia)

The Federal Trade Commission has accused Greenway Auto Group of charging car buyers thousands of dollars more than advertised vehicle prices, alleging that hidden fees and misleading discounts inflated the cost of purchases at its dealerships.

According to a lawsuit announced October 8, Greenway charged consumers an average of more than $3,350 above advertised prices in over 92% of transactions examined. The additional charges allegedly included administrative, delivery, processing, and dealer fees that consumers were required to pay.

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The FTC also alleges that some advertised prices included conditional rebates and discounts unavailable to many buyers. In a separate allegation, the agency accused Greenway of sending promotional mailers falsely claiming recipients had won thousands of dollars in cash prizes that could be collected at a dealership.

Greenway has agreed to a proposed settlement requiring its advertisements to prominently display the actual vehicle price, excluding only government-required charges. The agreement would also prohibit misleading claims about fees, financing requirements, and promotional prizes. The proposed court order must receive a judge’s approval before becoming legally binding.

For consumers shopping for a vehicle, the case highlights the importance of requesting a written, itemized out-the-door price before visiting a dealership or agreeing to financing. Buyers should carefully review dealer-added charges, confirm which discounts they qualify for, and compare the final purchase price rather than relying solely on advertised offers.

The Author

Picture of Aiden West

Aiden West

Financial Correspondent, Readovia

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