--- title: "FTC Advances Its Fight Against Bait-and-Switch Dealership Pricing" description: "The FTC and the Biden Administration are continuing to crack down on bait-and-switch dealership fees for valueless items." date: "2022-11-13" modified: "2022-11-13" authors: - name: "Nico DeMattia" job_title: "Contributing Writer" link: "https://www.thedrive.com/authors/nico-demattia" url: "https://www.thedrive.com/news/ftc-advances-its-fight-against-bait-and-switch-dealership-pricing" categories: - "Car Buying" - "News" --- # FTC Advances Its Fight Against Bait-and-Switch Dealership Pricing ![]() Almost everyone has at least some experience with car dealerships adding arbitrary, useless fees to the price of their cars. Things like paperwork fees and convenience fees are some of the most frustrating and insulting add-on costs customers can experience. It seems, though, that such fees could soon be a thing of the past. *[Automotive News]()* recently reported that the Federal Trade Commission (FTC) followed up with its proposal to curb all bait-and-switch fees for valueless items. According to[ FTC Chairwoman Lina Khan](), convenience fees don't exactly feel "convenient" and that companies should be competing for the best service, instead of trying to sneak hidden fees into customers' final price. Back in June, the FTC released its auto retail plan, which was meant to curtail such fees, prevent dealerships from working their own advertising costs into a car's price, and stopping them from selling secondary warranties that only duplicate the car's factory warranty. "As auto prices surge, the commission is taking comprehensive action to prohibit junk fees, bait-and-switch advertising and other practices that hit consumers' pocketbooks," said FTC Bureau of Consumer Protection Director Samuel Levine,[ in a statement on June 27](). https://twitter.com/POTUS/status/1588199321568157697 On October 20, the FTC followed up on that plan and the Biden Administration is cracking down on what it calls "junk fees" across all industries. Valueless dealership fees are among them. "One of the key things I’ve asked the council to take on was the unfair hidden fees known as “junk fees” that are taking real money—real money out of your pockets—real money out of the pockets of American families." [said President Biden](). The problem doesn't lie with just the fees themselves but the deception that follows them. Often times, customers will agree on a price with a salesperson, they're told their total cost and monthly payment, but then when it comes time to sign, there are all sorts of fees added to the bottom line. Sometimes, the dealership doesn't even point them out, allowing the customer to potentially miss them before signing. According to a 2018 [*Consumer Reports* ]()poll, 85 percent of customers have paid hidden fees in the past two years. There are three types of junk fees that the FTC is targeting: - Unnecessary charges for worthless, free, or fake products or services - Unavoidable charges imposed on captive consumers - Surprise charges that secretly push up the purchase price This doesn't mean all unnecessary fees will be curtailed, such as [adjusted dealer markup ]()(ADM), which is usually added to high-demand, low-allocation cars. Unfortunately, it doesn't seem like ADM is going anywhere soon. However, I don't think anyone is going to complain about the FTC cracking down on dealerships charging bate-and-switch feels for useless, non-existent items. *Have a tip? Send it over to info@thedrive.com* ## Author Nico is a writer and reviewer from New Jersey who probably thinks he’s a lot funnier than he actually is. His love of cars began when he was just a kid playing Gran Turismo 3, grinding out enough race wins with a Mazda Miata to save up for an in-game RUF 911. That passion for small, lightweight sports cars drove his desire to learn more about the industry, get his hands on as many cars as he could, and bring those experiences to life on the page. He cut his teeth writing about BMWs, Volkswagens, and Audis, mostly, and has owned far too many of each. He’s on his fourth 3 Series sedan, but all of his old, cheap German cars have forced him to learn more about car maintenance than his mechanical capability can handle. Too many late nights have been spent scrambling to get a car running by morning so he could get to work. For some reason, he never seems to learn that old Bimmers probably aren’t the best daily drivers. But he loves more than just old German cars. He’ll gladly drive and discuss anything with four (or even three) wheels. Cars aren’t his only passions, though. Nico is also a big nerd and loves movies, video games, comic books, and cares far too much about the New York Giants. So don’t be surprised if you see football references or dumb, obscure movie quotes in any of his car reviews. ### Author social links [Instagram]() [LinkedIn]()