Why FTC scrutiny of dealership ads will persist in 2027, and privacy, AI and F&I risks could emerge

According to Automotive News, privacy, artificial intelligence and finance and insurance practices also are potential compliance risks that could expose dealers to regulatory fines and legal action, experts said.[2]Brad Miller, co-CEO of dealership compliance firm ComplyAuto[2], told the outlet: "I think advertising issues are far from played out."[2]AIADA, summarising the Automotive News report, says that Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, wrote in letters to the 97 groups[2] that dealers must advertise prices that include all mandatory charges, such as document fees, except government taxes and fees.Law firm Crowell & Moring wrote that the letters confirm that the FTC, notwithstanding the CARS Rule's vacatur, continues to view auto dealer advertising and pricing practices as a priority area[3]. The firm added that warning letters of this nature frequently precede formal enforcement actions[3].On AI, Automotive News reported in August that cybersecurity experts say dealerships rushing to use AI are relying on unsecured platforms or installing AI systems without use restrictions[4].CBT News reported that compliance specialist Melkumyan expects compliance scrutiny could eventually extend beyond pricing and advertising into areas such as fixed operations and F&I.[5]