The Federal Trade Commission has filed a complaint and proposed settlement against Stream Auto Outlet, alleging that the Long Island dealer group used artificially low online prices to draw customers into showrooms and then required thousands of dollars in additional payments.
The complaint says required down payments were obscured in small-print disclosures behind a pop-up, while dealer fees and unwanted add-ons contradicted Stream Auto’s advertising claim of “no fees”. The FTC says it warned the business in March that a price omitting required charges could be unlawful.
Under the stipulated order filed on 9 November in the Eastern District of New York, advertisements that state a vehicle price would have to display prominently the amount a buyer must pay, excluding only government-mandated charges. The order would also bar misrepresentations about acquisition costs and terms.
The allegations are not findings. The settlement will have the force of law only if the federal judge approves and signs the order.
Read the FTC announcement, complaint and proposed order
