Nashville, TN – In a significant enforcement action, the Federal Trade Commission (FTC) has accused three Texas-based car dealerships owned by Asbury Automotive of engaging in illegal practices that unfairly burdened car buyers with undisclosed fees and add-ons.
According to the FTC, up to 75% of Asbury Automotive’s customers reported being charged for additional products and services that were either added to their contracts without their knowledge or falsely presented as mandatory.
The FTC’s investigation revealed that some of these undisclosed fees were hidden within electronic contracts, which displayed only the signature areas, concealing the full terms and conditions from the buyer. As a result, many customers remained unaware of the additional charges until after they had driven their new vehicles off the lot—if they found out at all.
“Trust is the cornerstone of any business transaction, and what the FTC has uncovered is a clear violation of that trust. It’s unacceptable for any dealership to take advantage of customers, especially through deceptive and discriminatory practices. We urge all consumers to be informed, ask questions, and report any suspicious activity to protect themselves and others.” said Robyn Householder, CEO & President of BBB.
Considering these findings, the FTC and BBB are urging car buyers to take specific steps to protect themselves from similar practices:
- Review All Documents Thoroughly: Always read the sales contract and financing agreement carefully. Request a printed copy to ensure you can review every detail. Confirm that the terms outlined in the contract match those agreed upon during negotiations. Insist on the removal of any add-ons or fees you did not agree to.
- Understand the Total Cost: Focus on the overall cost of the vehicle, not just the monthly payment. Obtain a written statement that includes all charges, fees, and add-ons. This helps prevent dealers from sneaking in extra costs.
- Explore Financing Options: Dealership financing often carries marked-up interest rates. Consider securing financing through banks, credit unions, or other financial institutions. A pre-approved offer can also serve as leverage when negotiating with the dealership.
“We are always available to help. Please send us an email info@bbb.org or give us a call at 615.242.4222 and we will assist in any way we can, said Robyn Householder, President & CEO of BBB serving Middle Tennessee and Southern Kentucky.”
Always report suspected fraud to the BBB by filing a complaint, visiting www.BBB.org/Scamtracker, and contacting the Federal Trade Commission (FTC) at reportfraud.ftc.gov or call 877.FTC.Help.
