The Federal Trade Commission has officially dismissed its 2024 complaint against Asbury Automotive Group, alleging that three of its North Texas dealerships charged customers for unwanted add-ons and discriminated against Black and Latino customers.
Driving the news: The FTC issued the administrative complaint in August 2024 against Asbury’s David McDavid Ford Fort Worth, David McDavid Honda of Frisco and David McDavid Honda of Irving, along with the general manager, claiming customers were charged for add-ons they didn’t agree to and that Black and Latino customers were charged additional amounts for add-ons.
Asbury denied the FTC’s claims and followed with a lawsuit in the U.S. District Court for Northern Texas, seeking a preliminary injunction and challenging the agency’s structure and procedures.
With the federal court case, the administrative action has remained stayed since late 2024.
In August of this year, the FTC filed a motion to withdraw the matter from adjudication.
The car business moves fast. Stay ahead.
The most important insights from automotive retail, delivered to your inbox daily.
Join 74,000 others now, it's free:
FTC dismisses case: In the order of dismissal, the FTC claimed it would face years of court litigation before any administrative adjudication.
The FTC claimed it must consider the “deployment of its limited agency resources,” while facing “the increasingly unlikely possibility of reaching a timely resolution.”
“Based on the totality of the circumstances, we have come to the difficult conclusion that the public interest requires that this litigation no longer be continued,” the FTC stated in the order.
What they’re saying: Adam Crowell, Chief Legal and Strategy Officer at KPA, told CDG News that the FTC’s action signals a change in strategy away from administrative complaints moving forward.
“The federal action will be moot and likely dismissed. I doubt the FTC will bring these in-house administrative actions against dealers in the future,” Crowell said. “Instead, the FTC will go directly to federal court.”
Bottom line: The FTC did reinforce, in the order dismissing the action against Asbury, its commitment to pursuing price transparency, specifically including automobile dealers.
The FTC also noted its recent remarks, warning letters, and federal court cases as evidence of that commitment.
A quick word from our partner
Remove the guesswork from digital wholesale.
OPENLANE is bringing clarity to vehicle digital auctions.
Experienced inspectors craft in-depth condition reports—enhanced by AI for more precise damage detection, engine analysis, OBD2 code diagnostic interpretation, and price prediction.
No X-ray vision needed.
New dealers to OPENLANE can earn up to $2,500 in fee credits.
