FTC Changes: Most Dealers Are Stuck In Stage 3 – Are You?
How do we react when the world changes and we don’t like it?
On March 13, 2026, the FTC has declared the advertised price must include any and all fees (including the doc fee or processing fee).
That new assertion changes everything.
That kind of change doesn’t just hit operations; it hits people. And emotions will run high as a result.
There’s a framework for thinking about foundational emotional shifts and it was developed by Dr. Kubler Ross who died in 2004.
Dr. Elisabeth Kübler-Ross was a psychiatrist who studied how people respond to death, dying, and loss. Her work wasn’t about business, regulation, or dealerships. It was about how we react when the world changes and we don’t like it.
She introduced the idea that people move through five (5) stages—denial, anger, bargaining, depression, and acceptance.
We should consider where emotions and compliance intersect as that’s what matters here.
Dr. Kuber Ross showed when change is forced on you, your first reaction isn’t clear thinking or strategy. It’s emotion.
That’s how people are reacting about the 97 warning letters sent to dealer groups by the Federal Trade Commission (FTC).
For the most part, dealers aren’t struggling with the rules because they’re partly unclear. (And they are partly unclear.) They’re struggling because the rules represent a (seeming) loss of control, of familiarity, and of “how we’ve always done it.” So, the reaction looks, sounds, and feels human:
First, it’s “this doesn’t apply to us.”
Then, “this is overreach.”
Then, “what’s the least we can do?”
There’s a reason why this feels different right now.
It’s because it is different right now. This is a fundamental shift in how vehicles can be advertised.
As one latest example, on March 23, 2026, Swickard Automotive agreed to pay $ 1 million to the State of Alaska (with $200,000 being a “a form of suspended penalty”). They are alleged to have violated Alaska’s Unfair Trade Practices Act for deceptive advertising.
Swickard was accused of using bait-and-switch tactics by advertising cars it didn’t possess to draw customers onto lots to buy other vehicles, as well as refusing to honor listed prices once customers arrived at a dealership, according to the Alaska Department of Law.
Regulators are active in real time and even as we speak. (More on this in my next article, too.)
Their focus is business’ transparency. In this case, transparency includes:
- Behaviors,
- Culture, and
- Documentation
As a business, what do you do consistently when someone’s not watching? The state Attorneys General and the FTC have been and will continue to be proactive in their scrutiny here.
The rumor mill – of which I hear constantly – says that the 97 dealers received these warning letters because of customer complaints and I believe it. I don’t know this for a fact but the rumors make sense to me.
Stage 1: Denial
“That was Alaska.”
“If that happened here, I could negotiate my way out of it.”
“Not enough dealers have been fined for me to worry about it.”
“Even if I got that phone call, I’ll get a warning. They won’t fine me for a first-time offense.”
Denial isn’t about ignorance; it’s about distance.
It’s the brain buying time, and bullying you, while trying to protect what’s familiar. The problem is, while you’re deciding whether it’s real or not, the environment has already changed around you.
Denial doesn’t just delay action. In this context, while you’re processing the changes, your risk exposure increases because you are not being proactive.
Stage 2: Anger
“This sucks.”
“This is overreach.”
“The FTC is killing our business.”
“Customers don’t even give a $#@% about this.”
“Attorneys overcomplicate everything.”
The anger isn’t solely about the FTC. In part, it’s also about control.
In this case, the rules have changed faster than anyone is comfortable. That discomfort leads to frustration. The “way we’ve always done it” no longer feels safe and we are into new territory. When things are new, there’s a sense of loss of control. This leads to anger.
Stage 3: Bargaining
If/when you reach stage 3, you are trying to figure out the minimum you have to do. This may include the ever-dangerous “confirmation bias.” Confirmation bias happens when you confirm what you already believe to be true while ignoring new information. In other words, the decision you’ve made in the past is the “right one,” despite new evidence to the contrary.
“Okay… just tell me what we have to do.”
“What’s the minimum to stay out of trouble?”
“Can we just adjust the disclosure and move on?”
This is where dealers start trying to thread the needle—doing just enough to feel protected without actually changing how the store operates. This is a risk question where the dealer has to decide how and when they are going to “comply.” Compliance in this context is not black and white. In fact, it’s quite the contrary. There are a myriad of ways to comply with the proffered regulations. From a risk perspective, there are many shades of gray. Entrepreneurial dealers will find the gray and, in doing do, will maximize their profits.
Stage 4: Depression
“This is too much.”
“We don’t even know where to start.”
“How are we supposed to afford all of this?”
“Why don’t we just let compliance run the place?”
The enormity here creates depression. To comply fully with the FTC, the advertised price will have to be the same:
- On your website(s)
- On third party websites
- Physically on the vehicle
- On the paperwork
- On any offers through the DBC
- Any written or verbal communication to customers, including texts
All departments will need to be aligned here to provide consistent pricing.
This change means you may feel out of control and that sucks.
You either stall here or move past it and get to work figuring it all out.
Stage 5: Acceptance
Hopefully, you are already here and you are ready to show your team, “This is how we win.”
Processes get fleshed out and defined here.
Policies get written and signed by all employees (and I do mean “all.”)
Compliance become an integral part of the sales process. You’re ready to roll.
Conclusion
You should consider auditing and subsequently documenting your new processes in your new norm. This documentation will be critical to answer any queries from the state Attorney General or FTC.
Enforcement is not slowing down. The question is how prepared are you going to be?
Every dealership is somewhere in the five stages.
The difference is simple:
Some are moving through them.
Others are staying in them.
Where are you?
DMM Expert Protecting Dealers' Business, Reputation & Legacy Tom Kline is the Dealer Bodyguard delivering peace of mind and a better night’s sleep for dealers. A former dealership owner with more than 30 years of retail experience, nationally recognized expert witness, and Founder of Better Vantage Point, Tom helps dealerships identify risk before it becomes litigation, regulatory action, financial loss, or headline news. His work is built around one mission: Protect the House. For more than three decades, Tom has guided dealer principals, executive teams, attorneys, and insurance professionals through some of the industry's most complex legal, operational, insurance, and compliance challenges. He has served as an expert witness in high-profile litigation involving the nation's largest dealership groups and is regularly retained to evaluate dealership operations, defend business practices, and identify vulnerabilities before they become costly problems. Tom is also the creator of the Tuck The Octopus℠ System, a practical philosophy for managing the countless "tentacles" of dealership risk. Through his books, Tuck The Octopus℠ and The 10 Minute Tuck, he equips dealership leaders with practical, ready-to-use tools that build stronger cultures, improve compliance, reduce losses, and create organizations that consistently outperform reactive competitors. Known for making complex compliance topics understandable, and even enjoyable, Tom combines real dealership experience with humor, memorable storytelling, and practical systems that employees actually remember long after the training ends. His philosophy is simple: It's Better to Train Than Explain. Whether serving as a Fractional Risk & Compliance Executive, keynote speaker, consultant, expert witness, or trusted advisor, Tom ensures dealerships: Protect their people. Protect their reputation. Protect their profits. Protect the House. Tom believes the best lawsuit is the one that never happens. His philosophy is simple: anticipate risk, build a culture of accountability, and make protecting the house everyone's responsibility. Tom Kline | Better Vantage Point, LLC 🛡️ We Get You Out Of Trouble...And Keep You Out Of Troubleˢᵐ 🐙 Tuck The Octopusˢᵐ 📊 Get Kraken On Compliance!ˢᵐ Content worth the click Get exclusive insights, expert advice, and the latest trends in automotive marketing delivered straight to your inbox.Similar Articles
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