In mid-September, the Federal Trade Commission told car dealers how it expected advertised prices to work. Twenty-three days later it showed what happens to a dealer group that doesn’t comply.
On October 8, the FTC filed a complaint and a proposed settlement against Greenway Auto Group. Greenway runs Kia and Hyundai stores in Orlando, Longwood and Jacksonville. The Commission voted 2-0 to authorize the filing in the U.S. District Court for the Middle District of Florida, Orlando Division. The interesting part isn’t that a dealer got caught padding prices. It’s how detailed the paperwork is. www.ftc.gov
One used Honda, five fees
The complaint’s main example is a used 2017 Honda CR-V EX-L. Greenway Kia North advertised it online at a “Greenway Price” of $18,800. The price sheet the buyers got at the dealership came to $23,539.85, which the complaint says was more than 25% above the advertised price. www.ftc.gov
Here’s what made up the difference, $4,739.85 in dealer-imposed fees: a $2,495 “recon” fee, a $995 “loyalty” fee, a $249.95 “Admin Fee,” an $899.95 “Dealer Fee” and a $99.95 “PTA Fee.” www.ftc.gov
Related Articles
- Mini Oxford Factory Halted: Missing Part Could Idle Plant Into 2027
- Alberta RCMP Allege a Recycler’s Employee Faked the Crush Records on Retired Police Vehicles
The “loyalty” fee is the strangest one. It’s $995, and the complaint says it’s charged to customers who have never bought from that dealership before. So you pay extra for not being loyal yet, which turns the usual loyalty discount upside down. www.ftc.gov
The CR-V story got worse. After the couple complained, Greenway lowered the online price, then sold the same car to another customer for almost $4,000 over the advertised price. www.ftc.gov
It wasn’t a one-off
At its Kia stores from March 1, 2023, through May 6, 2026, more than 92% of buyers of vehicles advertised on CarGurus.com and Cars.com paid more than the advertised price. On average they paid at least $3,354 more, not counting government charges and optional add-ons. www.ftc.gov
New cars had their own surcharge. Three Kia stores charged $2,295 or more for a “Greenway Advantage Package.” The complaint says it was installed on new vehicles and couldn’t be removed. For used cars, reconditioning was the big one. In one example, a used 2023 Kia Sportage advertised at $15,444 carried a $3,995 “recon” fee. www.ftc.gov
Reconditioning is real work: tires, brakes, fluids, detailing. Normally it’s part of the dealer’s cost of getting a car ready to sell, and that cost goes into the sticker price. Adding it as a separate fee means the dealer charges you for its own inventory prep and still advertises a lower number.
The warning letter backfired
The FTC sent Greenway a warning letter on March 11, 2026. Instead of changing its prices, Greenway changed its marketing. According to the complaint, its websites began telling shoppers “The price you see advertised online is the real price,” and listings promoted a “GREENWAY ALL-IN PRICE” with “ZERO HIDDEN FEES.” Then, on May 28, 2026, a 2026 Kia Sportage X-Line advertised at $37,752 was quoted at $39,854.40.
The complaint also covers the mailers. Greenway sent scratch-off mailers with “Official Winning Codes” promising prizes such as $2,500 in instant cash. People who showed up to collect never got the prize, and one of these mailers went out as recently as July 2026. www.ftc.gov
What the FAQ says
The Greenway case lines up with the FTC’s pricing FAQ, which FTC staff published on September 15, 2026. The FAQ’s math is simple. If a $40,000 car comes with a mandatory $85 document fee, the advertised price has to be $40,085. A discount that only some buyers qualify for can’t be used to set the advertised price. Dealers also can’t present optional add-ons as required or claim that an installed option can’t be removed. ftc publishes price transparency faqs auto dealers
Related Articles
- Ford’s Design Patent Lawsuit Over F-150 Fenders Builds on a 2019 Ruling Aftermarket Makers Lost
- Toyota Revives the Celica Name for Rally, and Hasn’t Said a Word About a Road Car
Formally, the FAQ reflects the views of FTC staff and doesn’t bind the public or the Commission. It doesn’t need to. The FTC brought this case under Section 5 of the FTC Act, its general authority over deceptive practices. That’s the same authority it’s relying on now that the CARS Rule, a 2024 regulation aimed specifically at car-dealer pricing, is gone. The Commission formally withdrew the CARS Rule in February 2026 (Federal Register notice). ftcgovinfo
What Greenway agreed to, and what it didn’t
Under the stipulated order, Greenway can’t advertise any amount for buying, financing or leasing a car unless the total price is the most prominently displayed figure. It’s also permanently barred from misrepresenting whether fees or products are optional or whether a particular financing source is required. www.ftc.gov
No money changes hands. No refunds, no penalties. The CR-V buyers don’t get anything back. The order only takes legal effect once a judge approves and signs it. www.ftc.gov
What this means for buyers
Circle every line item that sounds like the dealer’s own overhead. Recon, admin, a “dealer” fee: that’s the store’s cost of doing business, billed to you. Ask for an out-the-door price in writing before you visit the store. If you finance, keep in mind that every fee rolled into the loan builds up interest for the whole term. That $4,739.85 doesn’t stay at $4,739.85.
If a dealer near you advertises one price and charges another, the FTC wants people to report it at ReportFraud.ftc.gov. FTC consumer protection chief Christopher Mufarrige put it this way: “Consumers can’t make informed choices when the actual price is hidden.” Greenway’s own website said almost the same thing. ftc www.ftc.gov
Ever been quoted one number online and handed a different one at the desk? Tell us which fee made you walk.