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Automobile Dealers and the FTC’s Safeguards Rule Frequently Asked Questions
FTC Provides Guidance on Updated Safeguards Rule
FTC Sends More Than $934,000 in Refunds to Consumers Harmed by Vroom’s Failed Delivery Promises
Vroom, Inc. FTC v.
In July 2024, the FTC took action against online used car dealer Vroom for misrepresenting that it thoroughly examined all vehicles before listing them for sale and failing to obtain consumers’ consent to shipment delays or provide prompt refunds when cars weren’t delivered in the time Vroom promised. The company agreed to a proposed settlement that would require the company to pay $1 million to refund consumers harmed by the company’s conduct.
In March 2025, the FTC sent more than $934,000 in refunds to consumers who were harmed by online used car dealer Vroom’s shipment delays.
General Motors and OnStar, LLC; Analysis of Proposed Consent Order To Aid Public Comment
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension (Alternative Fuels Rule)
FTC Takes Action Against General Motors for Sharing Drivers’ Precise Location and Driving Behavior Data Without Consent
FTC, Maryland Attorney General Act to Stop Lindsay Auto from Falsely Touting Low Prices and Overcharging Consumers for Unwanted Fees and Add-Ons
FTC, Illinois Take Action Against Leader Automotive Group for Overcharging and Deceiving Consumers Through Add-Ons, Junk Fees, Bogus Reviews
Leader Automotive Group, et al., FTC and State of Illinois v.
A group of 10 car dealerships doing business as Leader Automotive Group and their parent company, AutoCanada, will be required to pay $20 million to settle allegations they systematically defrauded consumers looking to buy vehicles as a result of a lawsuit by the Federal Trade Commission and state of Illinois.
In addition to paying $20 million, which will be used to refund harmed consumers, the proposed settlement also would require the companies to make clear disclosures of a car’s offering price—the actual price any consumer can pay to get the car, excluding only required government charges—and get consent from buyers for any charges. The $20 million proposed monetary judgment is the largest the FTC has secured against an auto dealer.
FTC Sends More Than $1 Million to Consumers Harmed by Rhinelander Auto’s Unlawful Junk Fees and Discriminatory Financing
Rhinelander Auto
The Federal Trade Commission and State of Wisconsin are taking action against Wisconsin auto dealer group Rhinelander Auto Center, its current and former owners, and general manager Daniel Towne for deceiving consumers by tacking hundreds or even thousands of dollars in illegal junk fees onto car prices and for discriminating against American Indian customers by charging them higher financing costs and fees.
The defendants have agreed to proposed court orders that will require Rhinelander’s current owners and Towne to stop their unlawful practices and provide $1.1 million to be used for refunds to consumers.
In October 2024, the Federal Trade Commission sent more than $1 million in refunds to consumers who were allegedly harmed by Rhinelander Auto Center’s junk fees and discriminatory practices.
FTC Takes Action Against Auto Dealer Group Asbury Automotive for Discriminating Against Black and Latino Consumers and Charging for Unwanted Add-Ons
FTC, State of Arizona Take Action Against Coulter Motor Company for Deceptive Pricing and Discriminatory Practices
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