On October 4, 2024, several North Texas car dealerships, including Asbury Automotive Group, filed a lawsuit against the Federal Trade Commission (FTC) in the U.S. Northern District of Texas. The lawsuit claims that the FTC's administrative process is unconstitutional, following accusations that the dealerships charged Black and Latino customers more for unwanted add-ons [907b7c66].
The allegations against the dealerships stem from a complaint filed in August 2024, which accused them of discriminatory pricing practices. Asbury Automotive contends that the FTC has not substantiated its claims with evidence of harmed customers and argues that the administrative process infringes on their right to a jury trial. The FTC's complaint was prompted by Asbury's refusal to agree to a proposed consent order [907b7c66].
The lawsuit highlights ongoing tensions between car dealerships and regulatory bodies regarding consumer rights and discrimination. Asbury's legal action is part of a broader conversation about fairness in the automotive industry, particularly concerning how dealerships handle pricing and additional fees. An evidentiary hearing for the case is scheduled for April 16, 2025, where both sides will present their arguments [907b7c66].
This legal battle adds to the scrutiny faced by car dealerships, particularly in light of recent investigations into data privacy and consumer protection practices. Just weeks earlier, Texas Attorney General Ken Paxton announced an investigation into several connected car manufacturers over data collection and sharing practices, emphasizing the state's commitment to consumer rights and data privacy [fe603e77]. As these issues unfold, both the automotive industry and regulatory agencies will be closely watched by consumers and advocates alike [34a81ff4].