Few businesses have a worse reputation among the public than car dealerships. Jokes about them being shady and dishonest go back at least half a century. That reputation isn't helped when some dealer groups end up confirming the stereotypes and engage in misleading and illegal business practices. It seems that complaints about dealers have reached a tipping point because the Federal Trade Commission (FTC) has sent out warning letters to 97 dealer groups around the country to get their businesses in order.
The letter sent to dealers basically expresses concern that the receiving dealership may be using deceptive and illegal advertising practices, outlines what actions are illegal, and notes that the FTC will be monitoring the market and consumer complaints. Additionally, it cites three specific cases that the FTC has brought against dealer groups regarding illegal practices, seemingly as an additional warning that other dealers could be next.
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