The FTC Is Going After Dealerships That Keep Ads Up for Already-Sold Cars

The FTC Is Going After Dealerships That Keep Ads Up for Already-Sold Cars

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UPDATE 3/30/2026: "The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price," Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, said in a statement to Car and Driver.

The Federal Trade Commission has begun taking action against car dealerships that leave vehicle listings active after the cars have been sold, according to a report from Automotive News. The crackdown kicked off in mid-March, when the head of the FTC's Bureau of Consumer Protection sent letters to 97 dealership groups warning that they may have engaged in one of six advertising practices considered illegal.

"Not taking down the listings in a timely fashion certainly could be an issue," Adam Crowell, chief legal and strategy officer at compliance firm KPA, told the publication.

The FTC reportedly stopped short of providing AN with a specific timeline for how soon a sold vehicle's listing must be removed, citing reluctance to offer legal guidance. Even so, dealerships would be well-advised to act quickly: failing to comply with the FTC's advertising standards could trigger fines of up to $50,000 per violation.

The business logic behind keeping sold-car listings up isn't hard to follow. Pulling each listing takes time and resources, and a customer who comes in looking for a specific car — even one that's no longer available — can sometimes be converted into a buyer for a different vehicle once they're on the lot.

This story was originally published on March 27, 2026.

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