“What the FTC?”

At the beginning of the year, I made a prediction: Transparency would be the most powerful competitive advantage in the retail automotive industry.*

Fast forward a few months. The FTC issued warning letters to 97 dealer groups representing more than 1,000 dealerships, signaling potential enforcement actions and penalties of up to $50,000 per violation. Last Thursday (May 28), after receiving numerous FOIA requests, the FTC made public its list of the 97 entities that received warning letters back in March.

Some dealers will see this as government overreach.

I see it differently.

Retail automotive has long been a trust-challenged category. An unfair predicament for the overwhelming majority of dealers who do the right thing for our clients every day. The reality is that a small minority of bad actors damage the reputations of everyone else and perpetuate the misconception that all dealers must be shady.

That’s exactly why I actually welcome FTC oversight.

I also welcome the whistleblowers. Or, at least, I welcome the “intent” of a good dealer finally being able to count on everyone playing fair.

Because good dealers should WANT bad behavior exposed.

As I see it, the practices being targeted by the FTC are not controversial. Advertising a vehicle online at one price and tacking on mandatory fees later. Conditional pricing based on financing. Changing prices due to trade status. Advertising rebates that customers don’t actually qualify for. Promoting vehicles that are already sold. Hiding mandatory charges in fine print. This is the stuff that gives the industry that we all love a bad rap.

The dealers who hear about these FTC regulations and think: “Great. More regulation.”

Many of them are the same dealers who are tarnishing the industry's reputation.

If you are one of these dealers who feels threatened by transparency, it’s worth asking yourself why. What do you stand to lose here? The way I see it, the most obvious thing is a lot of money if you’re found guilty of violating the regulations. The less obvious but ultimately more significant thing is a complete loss of trust by future buyers.

*(See My Top 8 Predictions for 2026 on LinkedIn if you’re curious to read the rest.)

This is one of those moments where the industry has a choice. You can view this as regulatory pressure. Or you can recognize it for what it really is: A line in the sand. Because this isn’t really about the FTC. The FTC is just the messenger. The real force at work here is transparency. The real driver (no pun intended) is consumers who have filed so many complaints against dealers (mostly shady ones, but yes, some good dealers who somehow missed something) that they felt they had to do something to bring bad dealer behavior to a screeching halt.

Consumers are more informed than they’ve ever been. They have more options than ever. More power than ever. And increasingly, they’re making decisions based on one thing:

Trust.

Dealers are no longer simply in the business of selling cars.

We’re in the business of selling confidence.

Confidence in the transaction. Confidence in the process. Confidence in the ownership experience. When a customer buys from you, they’re not just buying a vehicle. They’re buying into the trust they value greatly. Trust is and will continue to be the highest-margin product in your store.

Because when customers trust you, everything gets easier. Deals move faster. Negotiations shrink. Retention improves. Referrals increase. Margins improve.

When trust disappears?

Everything gets harder.

There was a time when customers used search engines to answer one question: Where can I find this car? Today, AI search is helping consumers answer a much more powerful question: Who can I trust?

In other words, search was a cursory look; AI search is a full-body MRI.

In an instant, AI is revealing to customers not just where to find the car they want, but also which dealership has the best reviews. The fewest complaints. They can see who is treating customers fairly. And more.

Reputation is no longer just word of mouth. It’s indexed. Instantly searchable. Permanently online. And if your store lands on the wrong side of transparency, it doesn’t disappear after the customer leaves. It becomes part of your digital footprint.

That’s the real risk.

Not the FTC fines… I mean, don’t get me wrong, at $50,000 per violation, dealer groups can quickly rack up seven‑figure fines across multiple stores. But the loss of trust will cost you much more dearly in the long run. Because once customers question your integrity, you don’t have a pricing problem. You have a business problem.

More than anything, I hope this letter stresses to dealers that transparency can’t just live with legal or compliance.

It has to live in culture.

Leadership has to own it.

Six months ago, I predicted that radical transparency would become a competitive advantage.

Not transparency because regulators forced you. Transparency because it’s strategically smarter. Transparency because great businesses do the right thing because it IS the right thing; not because some government agency forced them into it.

Show real pricing. Explain fees. Break down F&I products. Show reconditioning costs. EDUCATE CUSTOMERS rather than defend against them. If that level of transparency makes you uncomfortable, that discomfort might be telling you something. Because the dealers embracing transparency today will be the ones pulling ahead of the pack tomorrow.

Tools already exist that aggregate out-the-door quotes, grade dealers, expose pricing behavior, and shine light on dealer ads. Whether you like those tools or not is irrelevant. The market is moving toward visibility, and your shoppers are relying on those tools.

The only question is whether you move with it.

Good dealers should not fear this moment.

They should welcome it.

Every dishonest practice removed from the market strengthens the reputation of dealers doing things the right way. If you’re already operating on the right side of transparency, this is your opportunity. Lean into it. Build around it. Talk about it. Make trust part of your brand.

In a market where everyone competes on price, the winners will compete on trust.

Short answer: [one or two sentences that answer the headline outright, before any set-up].

Key takeaways

1. [First takeaway, stated as a finding, not a topic]
2. [Second takeaway]
3. [Third takeaway]
4. [Fourth takeaway]
5. [Fifth takeaway]

By the numbers

The standard to hold

[What has to be true before anything else works. Name the specific platforms, OEM programs, industry bodies or published research where they are not confidential.]

How the best operators run it

[The steps in order. Who owns each one, and how often it happens.]

Comparing the two common approaches

How to choose

This fits you if: [ ]

This does not fit you if: [ ]

Five questions to ask before you commit

1. [ ]
2. [ ]
3. [ ]
4. [ ]
5. [ ]

Red flags: [ ]

The mistakes that cost the most

[Two or three specific, expensive mistakes and what they cost.]

Your next three moves

1. [Action, with an owner and a date]
2. [Action]
3. [Action]

About this guidance

Written by David Spisak from nearly 50 years in retail automotive. Last reviewed [month year].

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