FTC Cracks Down on Car Dealerships Advertising Unavailable Vehicles

Regulators target deceptive advertising practices as industry experts advise swift removal of sold vehicle listings.

Mar. 30, 2026 at 4:56pm

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The Federal Trade Commission has intensified its oversight of automotive dealership advertising practices, specifically targeting the promotion of vehicles that are no longer in stock or do not exist. Dealerships face significant fines and customer restitution for violations, prompting industry experts to recommend removing sold vehicle listings within 24 hours to maintain compliance.

Why it matters

This FTC crackdown on deceptive car dealership advertising practices aims to protect consumers from bait-and-switch tactics, where dealers advertise vehicles they don't actually have available for purchase. Regulators are taking a hard stance to curb these unfair practices that mislead customers and undermine trust in the automotive industry.

The details

The FTC has sent letters to 97 dealership groups, alerting them to suspected violations of six advertising practices the agency considers illegal. While some of these involve pricing discrepancies, the sixth practice directly addresses advertising vehicles that are unavailable or nonexistent. Dealerships face fines exceeding $50,000 per offense plus customer restitution for these violations. Industry experts recommend establishing formal processes to quickly remove sold vehicle listings, ideally within 24 hours, to maintain compliance. Larger dealership groups are adopting automated inventory management systems, while some states like Alaska have also taken enforcement action against deceptive advertising practices.

  • On March 26, the CEO of the Rick Case Automotive Group confirmed the use of automated software and manual monitoring to maintain advertising accuracy.
  • On March 24, the Alaska Department of Law announced an $800,000 settlement with Swickard Auto Group over allegations of advertising unavailable models and refusing to sell vehicles at advertised prices.

The players

FTC

The Federal Trade Commission, the federal agency responsible for consumer protection and antitrust enforcement.

Patricia Covington

An attorney who spoke with Automotive News about the significant financial consequences dealerships face for FTC advertising violations.

Christopher Mufarrige

The director of the FTC's Bureau of Consumer Protection, who sent letters to 97 dealership groups about suspected advertising violations.

Adam Crowell

The chief legal and strategy officer at compliance firm KPA, who emphasized the importance of timely action in removing sold vehicle listings.

Brad Miller

The co-CEO and chief legal officer of compliance firm ComplyAuto, who advised dealerships to establish formal processes for advertisement removal within 24 hours.

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What they’re saying

“Not taking down the listings in a timely fashion certainly could be an issue.”

— Adam Crowell, Chief Legal and Strategy Officer, KPA

“Make it pretty fast. ... I would think within 24 hours you can generally get these off your website.”

— Brad Miller, Co-CEO and Chief Legal Officer, ComplyAuto

“Car dealers don't get to advertise one price and charge another — or advertise cars that aren't really there. That's a bait-and-switch, and it's unlawful.”

— Stephen Cox, Alaska Attorney General

What’s next

The FTC has not specified exact timeframes for compliance, citing a desire not to provide legal advice. However, industry experts recommend that dealerships establish formal processes to quickly remove sold vehicle listings, ideally within 24 hours, to maintain compliance with the FTC's crackdown on deceptive advertising practices.

The takeaway

This FTC enforcement action highlights the growing scrutiny on automotive dealerships to accurately represent their inventory and pricing in advertising. Dealerships must be proactive in updating their online listings and disclosures to avoid significant fines and customer restitution, as regulators aim to protect consumers from bait-and-switch tactics that undermine trust in the industry.