Episode #1372: Paul’s in DC today for the CBT News Auto Leadership Summit on Fair Pricing and Compliance, and we’re talking about how much the industry has (or hasn’t) shifted since the FTC put 97 dealers on notice. Plus, when an AI chatbot overquotes a customer, who’s to blame?

Show Notes with links:

Even as the FTC is turning up the heat on deceptive vehicle pricing, new data suggests hidden charges remain common across both used and new vehicle sales.
- CoPilot found 59% of 500 assisted used-car purchases included discretionary fees not reflected in the advertised online price.
- CarEdge found meaningful differences between advertised prices and actual quotes at nearly 40% of dealers with CEO Zach Shefska saying: “There is still endemic price misinformation on the internet.”
- In April, Lindsay Automotive Group agreed to a settlement with the FTC that could cost up to $75 million in consumer restitution plus a $3.1 million penalty tied to deceptive pricing and unwanted add-ons.
- Dealers who advertise all-in pricing say they're often competing against stores showing lower teaser prices and revealing fees later in the buying process.
- FTC Consumer Protection Bureau Director Christopher Mufarrige says the agency has been encouraged by dealer responses so far, but added: “That said, you’ve always got your bad apples out there.”

A Canadian BMW owner thought he'd successfully negotiated the sale of his vehicle back to the dealership, only to discover the AI bot he had been chatting with had quoted him $7000 more than the store was willing to pay
- Toronto BMW customer Zack Giacomelli received a trade-in offer of $27,162 from "Quinn," even scheduling an appointment to finalize the deal.
- BMW Toronto initially lowered the offer by roughly $7,000, but after media inquiries agreed to honor the chatbot's original price.
- Management said the inflated offer stemmed from a miscommunication by a human employee that caused the bot to interpret Giacomelli's loan balance as the vehicle's purchase price.
- The dealership says it will make it clearer when customers are interacting with AI and ensure future vehicle purchase offers come directly from human employees.
- “It’s a bit of a new territory for us. We’re trying to figure out the best way for a good AI customer experience.” — Scott Shadbolt, Pre-Owned Sales Manager, BMW Toronto.

Today’s show is brought to you by our friends at Widewail. who can show you where your dealership stands on issues the FTC is currently scrutinizing. Join their webinar on the topic June 18th at widewail.com/FTC.