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Vroom, Inc. FTC v.

In July 2024, the FTC took action against online used car dealer Vroom for misrepresenting that it thoroughly examined all vehicles before listing them for sale and failing to obtain consumers’ consent to shipment delays or provide prompt refunds when cars weren’t delivered in the time Vroom promised. The company agreed to a proposed settlement that would require the company to pay $1 million to refund consumers harmed by the company’s conduct.

In March 2025, the FTC sent more than $934,000 in refunds to consumers who were harmed by online used car dealer Vroom’s shipment delays.

Type of Action
Federal
Last Updated
FTC Matter/File Number
2123138
Case Status
Pending

Leader Automotive Group, et al., FTC and State of Illinois v.

A group of 10 car dealerships doing business as Leader Automotive Group and their parent company, AutoCanada, will be required to pay $20 million to settle allegations they systematically defrauded consumers looking to buy vehicles as a result of a lawsuit by the Federal Trade Commission and state of Illinois.

In addition to paying $20 million, which will be used to refund harmed consumers, the proposed settlement also would require the companies to make clear disclosures of a car’s offering price—the actual price any consumer can pay to get the car, excluding only required government charges—and get consent from buyers for any charges. The $20 million proposed monetary judgment is the largest the FTC has secured against an auto dealer.

Type of Action
Federal
Last Updated
FTC Matter/File Number
2323004
Case Status
Pending

Rhinelander Auto

The Federal Trade Commission and State of Wisconsin are taking action against Wisconsin auto dealer group Rhinelander Auto Center, its current and former owners, and general manager Daniel Towne for deceiving consumers by tacking hundreds or even thousands of dollars in illegal junk fees onto car prices and for discriminating against American Indian customers by charging them higher financing costs and fees.

The defendants have agreed to proposed court orders that will require Rhinelander’s current owners and Towne to stop their unlawful practices and provide $1.1 million to be used for refunds to consumers.

In October 2024, the Federal Trade Commission sent more than $1 million in refunds to consumers who were allegedly harmed by Rhinelander Auto Center’s junk fees and discriminatory practices.

Type of Action
Administrative
Last Updated
Case Status
Pending

Coulter Motor Company and Gregory DePaola, FTC and State of Arizona v.

The Federal Trade Commission and State of Arizona are taking action against Arizona-based Coulter Motor Company for engaging in a wide array of practices that harm consumers, from deceptive online vehicle pricing to charging Latino car buyers more in interest and add-on products. Coulter, along with its former general manager, Gregory Depaola, will pay $2.6 million to settle the lawsuit, most of which will go to provide refunds to consumers harmed by defendants’ allegedly unlawful actions.

Type of Action
Federal
Last Updated
FTC Matter/File Number
222 3033
Case Status
Pending