The Federal Trade Commission’s (“FTC”) recent decision to issue warning letters to 97 dealership groups across the country in the 1st quarter 2026 marks a significant escalation in the agency’s scrutiny of automotive advertising practices. For Illinois dealers, the implications are especially important. Not only does Section 5 of the FTC Act¹ prohibit unfair or deceptive acts or practices, but Illinois dealers must also comply with Section 2 of the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”)², which imposes its own broad prohibitions on misleading advertising, along with the Illinois Motor Vehicle Advertising Regulations³ promulgated under the ICFA. Together, these laws create an integrated regulatory framework that demands careful attention to how vehicle prices, fees, add-on products, and terms are presented to consumers.

The FTC’s letters focused on advertising practices that were alleged to create misleading impressions about vehicle prices, availability, financing terms, and add on products. In many cases, the agency identified advertisements that promoted prices consumers could not actually obtain because mandatory fees or dealer installed items were added later in the transaction. The FTC also criticized disclosures that were unclear, buried in fine print, or contradicted by more prominent statements. The FTC letters serve as a formal warning that the agency expects immediate corrective action and will not hesitate to pursue enforcement if the same practices continue.

Illinois dealers face even greater exposure because the Illinois Consumer Fraud Act is interpreted broadly and applies to any advertising practice that could confuse or mislead a reasonable consumer. Illinois regulators and courts have long taken the position that an advertised price must reflect the actual price a consumer can pay, without hidden or undisclosed mandatory charges. This expectation is reinforced by the impact of the FTC’s action on an Illinois specific requirement. Whereas before the FTC’s action, the Illinois statutory documentary service fee⁴ could be excluded from the advertised price provided it was clearly and conspicuously disclosed in the advertisement, this is no longer permitted. With the FTC’s recent enforcement posture, the documentary service fee must also be included in the total advertised price. Additionally, the Illinois electronic registration and title fee (“ERT fee”) must also be included in the total advertised price. A dealer cannot advertise a vehicle at one price and then add the doc fee or the ERT fee later; the advertised price must be the full, total, all in price, with only government fees — taxes, title, and license — excluded.

In practical terms, Illinois dealers should ensure that every advertisement — whether on their website, a third-party listing platform, social media, email, or video, window sticker, even verbal representations — presents a single, truthful, all in price that includes the doc fee and any other non-government, non-optional charges. Disclosures must be clear, conspicuous, and consistent with the overall message of the advertisement. If a condition applies to a price, such as a rebate available only to certain customers, that condition must be stated plainly and in a way that does not contradict the main price claim. Regulators will not accept disclosures that are hidden in footnotes or overshadowed by larger, more prominent statements.

Dealers should also avoid advertising prices that depend on financing through a specific lender, the presence of a trade-in, or eligibility for rebates or incentives unless those conditions apply to every consumer. If a price is not available to all customers, it cannot be presented as the primary, most prominent advertised price. Similarly, any dealer installed accessories or add-ons that are not optional must be included in the advertised price. If the consumer cannot decline the item, the cost must be reflected in the price they see.

Because regulators treat all advertising channels equally, Illinois dealers should regularly review their digital content, including automated feeds to third-party listing sites, to ensure that every price displayed complies with both federal and state law. Staff training is essential, particularly for marketing teams and outside vendors who may not be familiar with Illinois specific requirements. Regular audits of advertising materials, along with written policies and vendor compliance certifications, can help demonstrate good faith efforts for greater protection if regulators inquire.

The FTC’s warning letters are a clear signal that automotive advertising is under heightened scrutiny. For Illinois dealers, the combination of federal expectations and the Illinois Consumer Fraud Act creates a strict environment in which accuracy, transparency, and consistency are essential. By ensuring the transparency of every advertised price, by presenting disclosures clearly, and by avoiding any practice that could mislead a reasonable consumer, Illinois dealers can significantly reduce their regulatory risks, not just to dealership entities but also to dealership principals and managers in their individual capacities, while maintaining consumer trust and preserving customer goodwill.