News & Analysis as of

Car Dealerships Unfair or Deceptive Trade Practices Enforcement Actions

Troutman Pepper Locke

Update on FTC’s CARS Rule

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As of April 27, 2025, the Federal Trade Commission (FTC) had not filed a petition for a writ of certiorari to appeal the Fifth Circuit’s decision vacating the Combating Auto Retail Scams Trade Regulation Rule (CARS Rule). The...more

Hudson Cook, LLP

FTC Proposes Largest Dealer Fine in Its History

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On December 19, 2024, the Federal Trade Commission announced a proposed $20 million settlement with Leader Automotive Group and its parent company, AutoCanada, to resolve claims brought by the FTC and the State of Illinois....more

Seyfarth Shaw LLP

5th Circuit Vacates FTC New Car Dealer Rule

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On January 27, 2025, the Fifth Circuit handed new car dealers a significant win by invalidating the Combating Auto Retail Scams (CARS) Trade Regulation Rule issued by the Federal Trade Commission (FTC) in December 2023. In a...more

Seyfarth Shaw LLP

FTC Posts $20 Million Settlement With Dealer Group For Alleged Deceptive Practices - Seyfarth's Future of Automotive Series

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On Thursday, December 19, 2024, the Federal Trade Commission (FTC) and Illinois Attorney General announced a massive $20 million settlement with Leader Automotive Group, the operator of 10 dealerships in and around...more

Troutman Pepper Locke

FTC and Illinois AG Secure $20M Settlement with Leader Automotive Group Over Allegedly Deceptive Practices

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In a significant enforcement action, the Federal Trade Commission (FTC) and the Illinois Attorney General have reached a $20 million settlement with Leader Automotive Group and its Canadian parent company, AutoCanada, over...more

Seyfarth Shaw LLP

FTC Continues Aggressive Enforcement Actions To Deter Deceptive Pricing Practices By Car Dealers - Seyfarth's Future of Automotive...

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On Thursday, August 15, 2024, the Federal Trade Commission (FTC) and Arizona Attorney General announced a $2.6 million settlement to resolve claims that Coulter Motor Company used deceptive online advertising to lure...more

Ballard Spahr LLP

Vroom, FTC Agree to $1 Million Settlement over Car Sales Misrepresentation

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Vroom, the former used car sales website which halted vehicle sales in January 2024, has agreed to a proposed settlement with the FTC over allegations the company misrepresented that it had examined all vehicles before...more

Hudson Cook, LLP

FTC and Online Used Car Dealer Agree to Settle Alleged Unfair and Deceptive Advertising and Business Practices Claims

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On July 2, 2024, the FTC filed a joint motion for entry of the FTC and the Company's stipulated order for permanent injunction, monetary judgment, and other relief to resolve allegations of misleading consumers who purchased...more

Troutman Pepper Locke

FTC and Wisconsin DOJ Settle with Auto Group over Alleged Illegal Add-Ons and Discrimination Against American Indian Consumers

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On October 24, the Federal Trade Commission (FTC) and the Wisconsin Department of Justice announced a settlement with Wisconsin auto dealer group Rhinelander Auto Center, Inc. (Rhinelander), its current and former owners, and...more

Hudson Cook, LLP

FTC Fines Wisconsin-Area Auto Group $1.1 Million for Unfair, Deceptive, and Discriminatory Sales Practices.

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Without admitting any wrongdoing, a Wisconsin-area auto dealer group settled a lawsuit brought by the FTC alleging it violated the Federal Trade Commission Act and Equal Credit Opportunity Act by charging American Indian...more

Sheppard Mullin Richter & Hampton LLP

CFPB Blog: Stop Overcharging for Auto Loan Add-on Products

On May 2, the CFPB published a blog post demonstrating its commitment to “a fair, transparent, and competitive auto lending market” by calling attention to add-on products for which auto dealers and finance companies “often...more

Sheppard Mullin Richter & Hampton LLP

FTC Imposes Record-Setting $10M Fine Against Multistate Auto Dealer, Settling Charges of Racial Discrimination and Unauthorized...

On March 31, the FTC and Illinois State Attorney General announced a settlement of charges against a large, multistate auto dealer that allegedly discriminated against black consumers and included illegal junk fees for...more

BakerHostetler

The Rubber Hits the Road to the Tune of $10 Million - FTC and Illinois Sue an Auto Dealership

BakerHostetler on

Not many people enjoy sitting in a car dealership spending hours evaluating or making a costly purchase, but it’s far more frustrating when the dealership allegedly engages in practices that face the ire of law enforcement. ...more

Hudson Cook, LLP

FTC Announces Settlement with Multistate Auto Dealership and General Manager Over Alleged Unauthorized Charges for Optional...

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HIGHLIGHTS: The Federal Trade Commission (FTC), jointly with Illinois, announced a $10 million resolution of allegations that a multistate auto dealership group and General Manager violated the FTC Act, Equal Credit...more

Cozen O'Connor

The State AG Report - Volume 7, Issue 22 | June 2021

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Subprime Auto Loan Company Settles Allegations It Turned Blind Eye to Shady Car Dealers - Massachusetts AG Maura Healey reached a settlement with subprime automobile finance company United Auto Credit Corporation (“UACC”) to...more

Hudson Cook, LLP

The FTC, Auto Dealers, and Credit Discrimination: What's Next?

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We have looked at the Federal Trade Commission's sweeping case against Bronx Honda and its general manager. Was this case part of a concerted effort by the FTC to ferret out illegal credit discrimination by automobile...more

Hudson Cook, LLP

FTC Nails Bronx Honda and General Manager for Discrimination and Deception

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The Federal Trade Commission made a big splash in late May when it announced a whopping $1.5 million settlement with Liberty Chevrolet, d/b/a Bronx Honda, and its general manager, Carlo Fittanto. Bronx Honda and Fittanto were...more

Hudson Cook, LLP

Actions Speak Louder than Words

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One of my all-time favorite sayings is “actions speaker louder than words.” Or, in other words, what you do has a stronger impact on people than what you say.  I can think of no better application of that maxim than to the...more

Hudson Cook, LLP

In Times of Peace, Prepare for War

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I just finished up a very active conference season. I’ve been on the “conference circuit” as some would say, since early January. Being on the conference circuit has enabled me to re-connect with friends, colleagues, clients...more

ArentFox Schiff

FTC Reminds Auto Dealer Vendor to Slow Down & Consider Security

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The Federal Trade Commission (FTC) recently released updated data security guidance in connection with a proposed settlement with LightYear Dealer Technologies, LLC (dba DealerBuilt), a service provider for the auto dealer...more

Hudson Cook, LLP

Compliance: Setting up a Preventative Maintenance Compliance Budget

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Prioritizing compliance with federal and state law may be the last item on your never ending to-do list. Most days, you have bigger fish to fry - you want to increase sales and decrease overhead. However, a small investment...more

White & Case LLP

Consumer financial services: The road ahead: Auto finance

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In 2018, the CFPB continued to pay attention to the auto finance industry, with a particular focus on indirect (dealer-arranged) auto lenders and unfair or abusive loan servicing practices....more

Goodwin

FTC Files Complaint Against Nine Auto Dealers Over Financing Practices

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On September 29, the Federal Trade Commission (FTC) announced that it had filed a complaint in the U.S. District Court for the Central District of California against nine auto dealers for purportedly engaging in deceptive and...more

Goodwin

Add-On Products Continue To Present Litigation Risks For Lenders

Goodwin on

The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on...more

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