- Utah's Division of Consumer Protection is warning auto dealers about deceptive sales tactics.
- The FTC sent letters to 97 auto dealer groups nationwide regarding deceptive pricing practices.
- Consumers should report discrepancies to Utah Division of Consumer Protection and FTC.
SALT LAKE CITY — You spot a deal online. But when you drive to the lot, you find that the advertised price you saw has disappeared into a haze of surprise dealer fees: prep fees, fabric protection, VIN etching, mandatory market adjustments and others.
"Well, we received a lot of complaints from consumers," Katie Hass of Utah's Division of Consumer Protection said in 2024, after they sent out letters to dealers across the state with a warning to knock it off.
Complaints had been pouring in: bait-and-switch pricing, phantom cars, surprise add-ons.
"We're seeing from different dealerships similar complaints by the consumers," Hass said.
Warning from the Feds
Now, the Federal Trade Commission has stepped in with a similar warning about dealer fees of its own. In March, it sent letters to 97 auto dealer groups nationwide.
"The Trump-Vance FTC is committed to preventing auto dealers from misleading consumers with low advertised prices and then adding on mandatory fees at the end of the purchasing process," said FTC Bureau of Consumer Protection Director Christopher Mufarrige in a news release. "The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price."
The letter listed six scenarios the FTC considers illegal:
- Advertising a price that doesn't include all the required fees
- Advertising a price that includes rebates or discounts that not all buyers will get
- Not including a down payment in the advertised price, if one is required.
- Showing an advertised price that's based on buyers using dealer financing
- Requiring buyers to get add-ons that aren't included in the advertised price
- Advertising cars that aren't actually available
Hass said the goal of the state's Consumer Protection Division is simple:
"This is part of our efforts as consumer protection to alert them to changes that we think are necessary in that marketplace to create a level playing field," she said.
Handling surprise dealer fees
If the price of the car you're buying jumps when you sit down to sign the papers, that's a red flag. Take a screenshot of the ad. Ask the dealer for a full out-the-door price upfront. If something doesn't add up, report it to the Utah Division of Consumer Protection and the Federal Trade Commission.
