Triple Threat

A “triple threat” is usually a compliment.

In theater, it’s the performer who can act, sing, and dance. In football, it’s the player who can run, pass, and kick. It’s versatility. Mastery. The kind of well-rounded excellence that makes someone dangerous in a good way.

But in today’s dealership environment, the “triple threat” has taken on a very different meaning which, unfortunately is more somber, and even ominous, depending on how you operate.

Because now, there are three (3) threats aimed at the dealership.

And they’re coming from three distinct directions at once.

Threat #1: The Customer

Let’s start with the most obvious threat from a risk and compliance perspective: the customers.

Customers today are empowered, informed, and, in many cases, skeptical. They’re walking in with screenshots. They’re walking in with expectations.

And increasingly, they have complaints. What are they doing with the complaints? Are they posting on Google reviews and Facebook? Yes, sometimes. Other times, they are writing directly to Motor Vehicle Dealer Boards, state Attorneys General, and the FTC. I was just on the telephone with a state regulator and here is what she said: As an agency, they are receiving so many calls (“inundated and overwhelmed”), they are going to begin to charge dealers with violations and fine them. It doesn’t matter whether or not the consumer is “right” or “wrong.” Regulators are getting complaints and they have had enough.

It’s worth repeating: It doesn’t matter whether or not the consumer is “right” or “wrong.” Regulators are getting complaints and they have had enough.

The FTC didn’t wake up one day and decide to send warning letters to ninety-seven (97) dealer groups for fun.² In my opinion, and it is my opinion, the action was driven by customer complaints. Customers are having poor experiences at dealerships. For example, customers get pissed when advertised prices don’t match what they’re actually asked to pay. There are many recent examples. It is not a coincidence that the Lindsay Automotive case was settled about three (3) weeks after the March 13 letters.³ The FTC means business and this was their first example for all to see.

When a customer sees one number online and another number in the F&I office, that gap doesn’t just create frustration. It creates exposure.

Complaints turn into investigations.

Investigations turn into enforcement.

And suddenly, what started as “just how we’ve always done it” becomes Exhibit A.

Satisfy your customers. Every, single one.

Threat #2: Lawyers and Regulators

If customers are the spark, lawyers and regulators are the accelerant.

The FTC has made it crystal clear: the price you advertise must be the price the customer pays including all mandatory fees. You cannot disclaim your way into a new price. The FTC is demanding clear and transparent pricing. I have mentioned this in previous articles when mentioning their settlements with StubHub, LiveNation, Express Scripts, and a $60 million settlement with InstaCart in 2025. This has been building for quite a while.

The FTC $78.1 million case against Lindsay Automotive was based on alleged improper charges tied to deceptive pricing, unauthorized add-ons, and deceptive practices.³ Publicly, Michael Lindsay has said the math does not amount to $78.1 million.

Regulators are looking for patterns. If they see a pattern, they act. Your website hygiene has never been more important than it is right now.

Threat #3: Other Dealers

Dealers have not fully considered this problem. On April 17, the FTC had a webinar to clarify some of the rules. During that conversation, the FTC Director of Consumer Protection, Chris Mufarrige, encouraged dealers to turn in other dealers who are not following the rules: https://reportfraud.ftc.gov/. (Take a moment to review this portal if you’ve never looked.)

For decades, compliance risk came from customers and the government.

Now it comes from across the street. Chris Mufarrige encouraged dealers to turn in their competition if they are not playing by the new rules. Let’s assume the FTC doesn’t react to these submissions (which I think they will). Dealers have not considered the Lanham Act of 1946. Now, it will quietly become another accelerant (i.e. a modern weapon) as one dealer can sue another for false or misleading advertising.

If your competitor believes your pricing gives you an unfair advantage because it’s not fully transparent, they don’t have to complain. They can sue.

This is no longer just about compliance.

The Convergence

Individually, each of these threats is manageable.

Customers complain.
Regulators regulate.
Competitors compete.

But together? It’s a lot.

A customer complains.
A regulator investigates.
A competitor files suit.

That’s the new reality.

That’s the triple threat.

Conclusion: Redefining the Triple Threat

A “triple threat” used to describe someone who could do three things exceptionally well.

Run. Pass. Kick.
Act. Sing. Dance.

Today, in automotive retail, the triple threat describes something else entirely:

• Customers who can expose you.
• Regulators who can penalize you.
• Competitors who can sue you.

Three different skill sets. Three different angles. One unified risk.

So, consider becoming your own triple threat: in discipline, transparency, and consistency. That’s what a robust risk and compliance program looks like.

Create a risk and compliance program. Audit it. Document it. Again. And again. And again.