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Home » Watchdog warns FTC that car buyers getting hit with hidden fees as online listings ‘mislead’

Watchdog warns FTC that car buyers getting hit with hidden fees as online listings ‘mislead’

By News RoomApril 30, 2026No Comments5 Mins Read
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Watchdog warns FTC that car buyers getting hit with hidden fees as online listings ‘mislead’
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A conservative policy group is urging federal regulators to widen their crackdown on deceptive car pricing — warning that hidden fees are costing Americans thousands of dollars on one of the biggest purchases of their lives, The Post has learned.

The Bull Moose Project, a right-leaning antitrust group, sent a letter to the Federal Trade Commission applauding recent enforcement actions against auto dealers but argued they don’t go far enough — because the real problem now lives online.

The push follows the agency’s March warning letters to 97 dealership groups and a high-profile settlement with Lindsay Automotive that uncovered more than $75 million in overcharges and resulted in a $3.1 million penalty.

Car buyers searching online listings may see prices that don’t reflect the final cost after hidden fees are added.

The group is calling on the FTC to extend its pricing rules beyond dealerships to the digital platforms where most consumers begin their search, including major listing sites and vehicle ad networks.

“Many dealers have not changed their websites and pricing strategies,” the letter states, adding that deceptive practices “persist across dealer websites and the advertisements they submit to online listings platforms where the vast majority of shoppers start their car buying journeys.”

The average markup from listing price to final cost can run 7% to 8%, meaning a car advertised at $40,000 could ultimately cost around $43,000 before taxes and title, according to the letter.

The Bull Moose Project argues that the gap persists because platforms allow dealers to advertise incomplete prices — effectively delaying disclosure of fees until later in the buying process, when shoppers are already committed.

“The main problem that we’re talking about here is the fact that they haven’t required any of the listing platforms… to show the full price,” Aiden Buzzetti, the group’s founder and president, told The Post.

Most car shoppers start online with platforms such as Cars.com — but watchdogs say listed prices often exclude mandatory add-ons.

“You can go through… Cars.com, AutoTrader, even Google ads… and the price at the very beginning and the price at the end are different — potentially hundreds or thousands of dollars in extra fees,” he said.

“For more than 25 years, Cars.com has been a trusted marketplace for consumers,” a spokesperson for Cars.com told The Post.

“We closely monitor both state and federal rules regarding consumer practices and marketplace listings, and we seek to establish policies that comply with the law.”

“We also provide our guidance to both dealers and consumers in this area.”

Buzzetti said the issue has become more urgent as car shopping has shifted almost entirely online.

“Because most people buy their car online, the listing aggregators are still able to get away with the deceptive pricing,” he said.

A conservative watchdog group says car buyers can end up paying thousands more than the advertised price. The image above shows a screenshot of AutoTrader.

While he credited the FTC for stepping up enforcement against dealerships, he said regulators are missing a critical piece of the puzzle.

“We’ve been very happy to see the work they’ve done so far… but we do think that they’re missing one of the key issues here,” Buzzetti said.

The group is urging the FTC to require “all-in pricing” across online listings — similar to rules already imposed on hotels and ticket sellers — so that the price displayed upfront reflects the actual cost consumers will pay.

“We want them to change their pricing standard to apply to listing platforms as well, not just the car dealerships directly,” Buzzetti said.

Until that happens, he argues, platforms are effectively enabling the problem.

“Right now they’re facilitating the deceptive pricing,” he said.

Buzzetti stopped short of calling for direct legal liability against the platforms, saying the issue could be resolved if companies voluntarily updated their policies.

“There shouldn’t be any reason to have to hold these platforms accountable if they just change their standards,” he said.

Still, he acknowledged the practice is deeply entrenched.

“They’ve probably been going on for as long as the internet has existed,” he said, adding that cracking down would “help benefit American families and their wallets.”

Consumer protection attorney Danny Karon said the concerns outlined in the letter reflect a broader pattern of pricing tactics that regulators have struggled to contain.

Car buyers negotiating at dealerships may encounter fees not disclosed in initial online listings.

Karon said the current system often leaves buyers facing a different reality than what they saw online.

“Right now there’s deception… the FTC wants to end the deception by making the price that you see the price that you get,” he said.

He compared the practice to other industries where hidden fees have drawn scrutiny from regulators.

While the Bull Moose Project is targeting platforms as a key driver of the issue, Karon said the FTC’s recent actions suggest regulators are currently focused on dealers themselves.

For consumers, he offered a blunt warning.

The Federal Trade Commission has taken action against auto dealers over deceptive pricing practices.

“They should know about the likelihood that the price they’re seeing is not the price they’re getting,” Karon said.

“Be prepared for a higher price by the time the process is done.”

Karon said the problem extends far beyond car buying, calling it part of a broader pattern across industries.

“This is sinister stuff… you got this happening in business and commerce all day every day,” he said.

“These companies do it all the time just to lure you in.”

“Vehicle prices should be advertised clearly and in a manner that facilitates comparison shopping by consumers,” said Amy Hunter Wright, vice president of public affairs at the National Automobile Dealers Association. “We are actively working with dealers, manufacturers, third-party listing sites, and others involved in auto advertising to ensure they are aware of the FTC’s recent statements on advertising compliance.”

The Post has sought comment from the FTC, Google and AutoTrader.

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