FTC Settles With Greenway Auto Group Over Hidden Fees: What Businesses Need to Know About Price Transparency

•    On October 8, 2026, the Federal Trade Commission announced a settlement with Greenway Auto Group. Under the deal, the Florida dealership group's price ads must prominently show the actual price consumers pay, leaving out only government-required charges.
•    The FTC's complaint against Greenway Auto Group alleges that over 92% of buyers at its Kia dealerships paid more than the advertised price, by an average of at least $3,354.
•    Greenway also allegedly mailed fake prize offers and kept its pricing practices going after a March 2026 FTC warning letter.

According to the complaint, Greenway, which operates more than 35 dealerships, listed vehicles under bold "GREENWAY PRICE" labels and then piled on dealer fees, administrative fees, reconditioning charges, and mandatory add-on packages. Three of those fees were charged to over 99% of consumers at its Kia stores. In one example, a used Honda CR-V advertised at $18,800 came with a price sheet of $23,539.85, which included a $2,495 "recon" fee and a $995 "loyalty" fee charged to anyone who hadn't bought there before.

Alleged Fake Mailers

The FTC also alleges that Greenway sent mailers with scratch-offs that matched "Official Winning Codes" for prizes like $2,500 in instant cash. Consumers who brought in winning fliers allegedly never got the prize. The FTC claimed that one salesman reportedly laughed at a consumer and said Greenway ran these promotions "all the time in different states."

The Enforcement Warning Greenway Allegedly Ignored

On March 11, 2026, the FTC warned Greenway that the price in its ads had to be the price consumers actually paid. The complaint alleges that Greenway responded by promising a "GREENWAY ALL-IN PRICE" online while still charging thousands more at the dealership.

The FTC will often initiate an investigation or enforcement action by following the same playbook. Learn more in the Essential Guide to FTC Compliance, investigations, and Enforcement.

What the Stipulated Order Requires

Under the stipulated order for permanent injunction, Greenway must:

• Show the Total Price, including all mandatory fees, as the most prominent item whenever it advertises an amount a consumer may pay.
• Stop misrepresenting whether fees, products, or services are optional or required.
• Stop misrepresenting whether a particular type or source of financing is required.
• Stop misrepresenting prizes, sweepstakes, and giveaways.
• Keep, for five years, its advertisements, sales scripts, and the "four-square" worksheets used to negotiate deals.

There's no monetary judgment, but the FTC can monitor compliance, including by posing as customers.

Why This Matters Across Industries

Price transparency is one of the FTC's top priorities right now, and the agency is applying it across grocery delivery, rental housing, ticketing, and auto sales. Hidden fees are only part of the picture. The FTC's surveillance pricing study found that details like a person's location, browsing history, and even mouse movements can be used to set individualized prices.

Look at Greenway's loyalty fee. Charging shoppers more based on who they are is a simple form of the same problem. A price that looks universal but is quietly tailored to a shopper can be considered deceptive under advertising law.

Learn More: What Businesses Need to Know About Surveillance Pricing

FTC Pricing Compliance

So what's the common thread? Whether a price gets inflated by drip fees or by an algorithm, the FTC wants the same thing: the actual total number up front.

What Businesses Should Do Now

This order targets a car dealer, but the lessons apply to any business that advertises a price and promotes those prices publicly.

Lead With the Total Price. Your most prominent number should include every mandatory fee. If a customer can't avoid a charge, it belongs in the headline price.

Watch Conditional Discounts. A price that only loyalty members or in-house financing customers can get isn't the real price for everyone else.

Stop Calling Mandatory Items Optional. If a package "cannot be removed," don't file it under optional offers.

Make Sure Your Claims Hold Up. A "no hidden fees" banner over a price with hidden fees just adds another misleading claim.

If your advertised price isn't the price customers actually pay (potentially before government charges like taxes), it's time to fix it. The Greenway order offers a clear roadmap. Show the full price, label conditions honestly, and make sure your marketing matches what happens at checkout.

If you've received an FTC warning letter or want to review your pricing disclosures, Kronenberger Rosenfeld can help you get ahead of enforcement. Contact our FTC compliance attorneys today.

FAQs

Isn't there an FTC rule on dealer fees? 

The FTC's auto-dealer rule (the CARS Rule) was struck down by the Fifth Circuit in January 2025, and the FTC formally withdrew it. That's why this action relies on case-by-case enforcement. The Rule on Unfair or Deceptive Fees only covers live-event tickets and short-term lodging.