"FTC Backpedals on Dealership Letters: A $5 Million Fine Threat Recedes. In a surprising move, the Federal Trade Commission (FTC) has clarified the nature of letters sent to 97 dealership groups in March, sparking widespread concern about potential massive fines. The letters, sent to some of the industry's largest players, had been interpreted as warnings of penalty offenses, which could have led to fines exceeding $53,000 per violation. However, the FTC has now confirmed that these letters were not, in fact, notices of penalty offenses, effectively rescinding the threat of massive fines and bringing relief to the affected dealerships."
The FTC confirmed its March letters to 97 dealership groups were not notices of penalty offenses, one of three ways the agency can bring fines of more than $53,000 per violation.
