That perfect car deal you found online? It might not exist. The Federal Trade Commission just warned 97 dealership groups nationwide about advertising vehicles they’ve already sold—or never had in the first place. These “ghost car” tactics lure buyers into showrooms, then stick them with pricier alternatives or hidden fees that weren’t in the original ad.
The crackdown, launched in mid-March, targets violations that can cost dealers upward of $50,000 per infraction. For car buyers tired of bait-and-switch schemes, it’s about time.
The Six Violations Burning Dealers
The warning letters spell out six illegal advertising practices under FTC Act Section 5. The most egregious? Keeping sold vehicles posted online like digital bait.
Dealers also face scrutiny for advertising prices that exclude mandatory fees, then surprising buyers with add-ons at signing. These tactics turn car shopping into a frustrating game where the advertised deal never materializes.
Key violations include:
- Advertising sold or non-existent vehicles
- Hiding mandatory fees from advertised prices
- Bait-and-switch pricing tactics
- Misrepresenting vehicle availability
- Adding undisclosed charges at point-of-sale
- Failing to honor advertised terms
Million-Dollar Consequences Already Landing
This isn’t empty posturing. The FTC has already extracted $20 million-plus from Leader Automotive Group and pursued Asbury Automotive for similar deceptive practices.
“Not taking down the listings in a timely fashion certainly could be an issue,” warns Adam Crowell from compliance firm KPA.
The National Automobile Dealers Association acknowledges the warnings, noting they’ll “continue to work with the FTC to address areas of concern” while emphasizing most of America’s 17,000-plus dealers already comply.
The timing matters. With vehicle prices still elevated from pandemic disruptions, buyers can’t afford to waste weekends chasing phantom deals that evaporate once they arrive at the lot.
For car shoppers, the message is clear: those too-good-to-be-true online listings might finally start reflecting reality—or disappear entirely when dealers face real financial consequences.
