CarGurus joins list of dealer service providers responding to FTC demands for price transparency
CarGurus booth at NADA Show 2023. Photo by Joe Overby.
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Dealers who use CarGurus to market their used-vehicle inventory online have about two weeks to shore up all the details included in those listings, especially connected with fees as demanded by the Federal Trade Commission.
This spring’s attention-getting move by the FTC is continuing to impact moves by service providers in automotive retailing, as CarGurus announced its decisions in a blog post on Wednesday.
Starting July 14, CarGurus said any used inventory on its platform without disclosed fees will be categorized as “No Rating” and will move lower in search results.
Shortly after July 14, CarGurus IMV and Deal Ratings will be calculated based all-in price, inclusive of disclosed fees, according to the company’s online message.
In March, the FTC sent letters to 97 auto groups nationwide, warning them that the prices they advertise must be the total price — including all mandatory fees — that consumers will be required to pay.
“Transparency and trust have been central to CarGurus’ mission since our start, and we’ve continued to build on our industry-leading foundation to connect dealers with high-intent shoppers,” the company said in its blog post.
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“As the Federal Trade Commission makes fee disclosure imperative, all-in pricing is becoming the industry standard. Using the simple fee set up technology we built, the majority of dealers have already provided all-in pricing on their used inventory on our platform,” CarGurus continued.
“We’re now requiring fee disclosure to continue to provide the most trustworthy car shopping experience — one that levels the playing field for dealers and consumers,” the site went on to say.
The move by CarGurus is the latest one by industry service providers to help dealers navigate the regulatory situation. Others have included:
—TrueCar responds to FTC’s increased scrutiny with updated pricing standards
—EFG: 6 compliance priorities for rest of 2026
—Expert: 7 activities that could justify dealer doc fees to regulators
—RockED debuts FTC pricing enforcement training for dealers
Patty Covington and Eric Johnson are partners at Hudson Cook and have a wide array of dealers in their client portfolios.
“The letters definitely caught the attention of most dealers,” Covington said when asked earlier this year about the impact of the FTC’s actions. “I wouldn’t say either in a positive or negative way, but more of ‘you’ve got our attention, now what?’ Dealers want to know in a definitive way, ‘What are the rules? What exactly does the FTC want to be included in the advertised price?’
“Most dealers want to comply, and they also want all other dealers to comply, using the same rules so that they are not at a competitive disadvantage,” Covington continued.
“And most dealers want all dealers to be playing on the same even playing field when it comes to pricing,” Johnson added.