No Cash Prize: Greenway Auto Settles Deceptive Pricing Charges

The Federal Trade Commission has reached a settlement with Greenway Auto Group, resolving allegations that the Florida-based group’s Kia dealerships advertised vehicles for thousands of dollars less than it actually charged and lured customers in with fraudulent prize mailers.
The FTC’s complaint alleges Greenway charged consumers more than $3,350 above the advertised price in more than 92% of transactions, tacking on administrative, dealer, delivery and processing fees not included in listed prices, and in some cases advertising prices that reflected conditional rebates available only to a subset of buyers. The group also allegedly sent mailers telling recipients they had won cash prizes of up to $2,500 — prizes that did not exist. One consumer reported that a Greenway salesperson “laughed at her for crediting the flier,” according to the complaint.
Notably, the FTC alleges Greenway continued the practices after receiving one of the agency’s 97 warning letters sent to dealers in March, adding false assurances of price transparency to its websites while continuing to advertise vehicles below actual prices.
Under the proposed settlement, Greenway’s owners neither admit nor deny any wrongdoing but agree to prominently disclose the actual price consumers will pay in all advertising, discontinue the prize mailers and submit compliance reports to the FTC. No monetary payment is required, but the agency can seek fines of up to $53,088 per offense for future violations.
“Price transparency is critical to a properly functioning market and is a top priority for the Trump FTC,” writes Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
Earlier this week, the FTC dismissed a 2-year-old payment packing complaint against three Texas dealerships owned by Asbury Automotive Group, citing limited agency resources.



