Car buyers at an Orlando-based dealership group paid more than $3,350 above the advertised price, on average, the Federal Trade Commission alleges. The FTC’s complaint against Greenway Auto Group alleges that gap showed up in over 92 percent of its sales. Greenway has agreed to a proposed court order that would force it to show the real price, the commission announced Oct. 8.

What the complaint alleges

The charges are allegations in a complaint, and the order that accompanies them is a proposed settlement. According to the FTC’s announcement, Greenway advertised vehicle prices and then added administrative fees, dealer fees, delivery fees and processing fees that took the final price well above the one shown. The FTC says the added charges averaged more than $3,350 per vehicle in over 92 percent of transactions.

The trade group NIADA, which reported on the case, says the complaint also points to conditional discounts, meaning discounts that applied only if a buyer met some requirement. The FTC also alleges Greenway used deceptive prize mailers, though neither description spells out what the mailers promised. The complaint was filed in the Middle District of Florida, Orlando Division.

Anyone who bought or leased a car from a dealer where the sticker price and the final price did not match knows the shape of the problem. For anyone shopping for a car, the practical question is what number to ask for before signing, so that the total on the paper is the total that was advertised.

The out-the-door price is the number that changes from dealer to dealer, and the FTC puts the gap in this case at more than $3,350 on average.

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What the proposed order would require

The order is a stipulated one, which means Greenway and the FTC agreed to its terms and a judge still has to approve it. As NIADA describes it, Greenway would have to “prominently advertise the actual price consumers must pay,” leaving out only charges the government requires, such as taxes. It could not misrepresent its fees, any financing requirements, or whether a product is optional. It also bars the deceptive prize mailers.

No dollar judgment is stated. The FTC announcement does not set up a refund program for past buyers, so there is no claim form and no payout to apply for. What the order changes is how Greenway advertises from here on.

A warning came first

Greenway was not caught by surprise. In March the FTC sent it a warning letter, signed by Christopher Mufarrige, director of the Bureau of Consumer Protection, according to the letter itself. It was dated March 11 and addressed to Greenway’s Orlando headquarters, with copies to six Greenway Kia dealerships. “The FTC is committed to ensuring that the price consumers see in advertising is the actual price they will pay,” the letter said.

That letter said it did not conclude Greenway had engaged in the practices it described. It asked the company to check that its advertised prices included all required fees and charges, apart from required government charges. Greenway was one of 97 dealership groups to get such a letter, according to NIADA.

What the FTC says dealers must advertise

In September the FTC’s staff put out price transparency FAQs for auto dealers. They say that “the advertised price of a vehicle must be the actual price that any consumer can walk in and pay to purchase the vehicle.” The only exception is for charges the government requires.

The same rule is what the Greenway order would put on paper for one company. A buyer at any other dealer has the same standard to point to.

Asking for the out-the-door price

The FTC’s consumer advice on buying a new car is the free guide to start with. It says to get an “out-the-door” price of the car in writing before visiting the lot and before talking financing with the dealer. That one number includes the price, taxes and every fee, so it can be compared across dealers on equal terms.

The same page says “it’s ok to say no to add-ons, and to ask the price,” and that it is not okay for dealers to tuck add-ons into a deal. Before signing, line up the final contract against the written figure, fee by fee. A line that was not in the written price, such as a processing or delivery charge, is a question to ask before signing.

The Greenway order itself takes effect only after a judge approves it. Until then it is a proposal, and the allegations in the complaint have not been decided by a court.

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This article was produced with AI assistance and edited for accuracy against the sources linked above.