A 2026 CBT News report has renewed dealer discussion about Federal Trade Commission scrutiny under Section 5 of the FTC Act. That attention should not be mistaken for a new expansion of federal authority, however. Section 5 has long prohibited unfair or deceptive acts or practices in commerce, including conduct that creates a misleading overall impression even when an individual statement may be literally accurate.
The more meaningful recent development is continued enforcement follow-through rather than a new legal standard.
What changed—and what did not
On March 13, 2025, the FTC announced that it was sending more than $9.7 million to consumers affected by practices alleged in the Napleton Automotive Group matter. The underlying federal and state case accused the dealership group of charging for unwanted add-ons and discriminating against some customers in vehicle financing. Napleton agreed to a $10 million settlement in 2022 without admitting or denying the allegations, and the later refund distribution demonstrated how an enforcement matter can remain costly and visible years after the transactions occurred.
Another important development came from outside the commission. On January 27, 2025, the U.S. Court of Appeals for the Fifth Circuit vacated the FTC’s Combating Auto Retail Scams Rule because the agency did not issue the required advance notice before beginning the rulemaking process. The decision did not erase Section 5 or prevent the FTC from pursuing allegedly deceptive dealership conduct through individual cases. Dealers therefore should not interpret the rule’s defeat as permission to relax advertising, pricing or add-on controls.
I'd argue that this distinction matters more than any claim that Section 5 suddenly “reshapes” dealership operations. The law’s foundation is established; what changes is where regulators focus, how customer-facing claims are delivered and how effectively a store can support what its employees and vendors communicated.
Start with the advertised-to-desk price
A used-car manager can begin with a simple comparison: select a sample of recently advertised vehicles and trace each one from the public listing to the first pencil, buyer’s order and final contract. Record the advertised price, every condition attached to it and the price first presented at the desk. A vehicle promoted at $24,995 but initially presented at $26,490 because of a required $1,495 protection package deserves immediate review. Management should determine whether the package was included in the advertised price, clearly optional or effectively mandatory.
This check should cover the dealership website, third-party marketplaces, paid search ads, social posts and emailed offers because customers rarely experience those channels as separate compliance environments.
A five-part audit for used-vehicle operations
- Match advertised and desking prices. For each sampled vehicle, compare the public price with the first price presented to the customer. Investigate differences caused by reconditioning charges, certification costs, accessories, market adjustments or products that were not clearly included in the advertisement.
- Test conditional rebates. Identify every discount used to reach the promoted price, then document eligibility, expiration dates and whether offers can actually be combined. If a price assumes loyalty, military and recent-graduate incentives, the advertisement should not imply that every shopper will qualify for all three.
- Verify availability claims. Confirm that each advertised vehicle was in inventory and reasonably available when the offer appeared. Keep records of sale dates, deposits, transfers and listing-removal timing so the store can explain why a vehicle remained online after its status changed.
- Audit mandatory and preselected add-ons. Review buyer’s orders and deal jackets for products that repeatedly appear on transactions. High attachment rates are not automatically improper, but they should prompt management to confirm that optional products were described accurately and accepted knowingly rather than presented as required.
- Review vendor-created offers. Sample listings, payment advertisements, trade-in promotions and lead responses produced by outside partners. Confirm that disclaimers are readable, inventory information is current and vendors are not adding conditions that conflict with store policy.
The review should include both completed and lost deals. Completed transactions show what reached the contract, while lost deals can reveal price surprises, unavailable vehicles or disputed conditions that drove customers away before paperwork was signed. Complaint logs, call recordings where lawfully maintained, customer emails and online reviews can help managers identify recurring friction. A cluster of comments about a required package is more useful than treating every complaint as an isolated misunderstanding.
Give managers ownership of the exceptions
Broad annual training is unlikely to catch the day-to-day variations that create risk. General managers should assign clear ownership for pricing approvals, rebate verification, inventory status and add-on disclosures. Used-car managers need authority to correct inaccurate listings quickly. Desk managers should know which advertised conditions are valid, while finance leaders should be able to show that optional products were explained and affirmatively accepted.
Exception reporting is especially valuable: management does not need to reread every deal if it can consistently identify transactions where the advertised price changed, multiple rebates were assumed, a high-dollar product was added or a recently sold vehicle continued generating leads.
The takeaway for dealership leaders
The available record does not show that the FTC created a new Section 5 standard for dealers in 2026. It does show that established authority remains relevant after the court set aside the CARS Rule, and that enforcement consequences can continue long after a case is settled. The practical response is not a one-time legal review. It is a recurring operational check that connects the advertised vehicle, the desk, the finance office and the final customer record.
Dealers that can explain each price difference, rebate condition, availability claim and add-on decision are better positioned to correct customer problems early and respond if a regulator asks questions.