Greenway Automotive has agreed to change its advertising and sales practices to settle Federal Trade Commission allegations that it advertised vehicles for thousands of dollars less than customers actually had to pay. Announced Oct. 8, the proposed settlement requires prominent disclosure of vehicle prices that include all mandatory dealership charges, excluding only required government charges. The agreement was filed in federal court in Orlando, Florida, and requires a judge’s approval before becoming enforceable.
Greenway neither admitted nor denied the allegations. The proposed order does not require the company to pay a fine or provide customer refunds. Instead, it imposes permanent restrictions on misleading advertising, along with reporting and recordkeeping requirements designed to let the FTC monitor compliance.
The complaint names two Greenway corporate entities and five Florida dealerships: Greenway Kia at the Avenues, Greenway Kia North, Greenway Kia East, Greenway Kia West and Greenway Hyundai Orlando. According to the FTC, an analysis of transactions at the four Kia dealerships from March 1, 2023, through May 6, 2026, found that more than 92% of customers purchasing vehicles advertised on Cars.com and CarGurus paid more than the advertised price. Those buyers paid an average of at least $3,354 extra, excluding required government charges and optional add-ons.
One example in the complaint involved a used 2017 Honda CR-V advertised for $18,800 at Greenway Kia North. The FTC alleges that a couple who traveled to purchase it received a price sheet showing $23,539.85 before government charges. The difference included reconditioning, loyalty, administrative, dealer and processing fees. According to the complaint, the dealership told the couple the fees were nonnegotiable and that the $995 loyalty fee applied to customers who had not previously purchased a vehicle at that location.
The FTC also alleges that Greenway advertised prices reflecting rebates and discounts available only to certain buyers, charged for mandatory packages and used misleading mailers to attract customers. Those mailers allegedly told recipients they had won thousands of dollars in cash prizes that could be collected at a dealership, although the advertised prizes were not real. The agency says Greenway continued misleading price advertising after receiving a warning in March, even while adding assurances of price transparency to its websites.
Under the proposed order, the total vehicle price must be clearly disclosed and be the most prominently displayed item in visual price advertising. Greenway also would be prohibited from misrepresenting vehicle availability, financing requirements, whether products or fees are optional, and the terms of prizes or giveaways. Each defendant must submit a sworn compliance report one year after the order takes effect, and the FTC can request additional information and monitor compliance by posing as customers.
The case follows the FTC’s March warning letters to 97 auto groups nationwide. Those letters identified practices the agency considers illegal, including leaving mandatory fees out of advertised prices, using discounts unavailable to everyone, requiring dealer financing to obtain an advertised price and advertising unavailable vehicles. The warning’s message was straightforward: A price should give shoppers a meaningful way to compare vehicles, rather than serve as a starting point for discovering additional mandatory charges at the dealership.