FTC Secures Settlement with Stream Auto Outlet, Advancing Price Transparency for Auto-Buying Consumers

The Federal Trade Commission announced an agreement today with Stream Auto Outlet, resolving claims that the Long Island, New York-based dealership group deceived consumers by advertising prices far lower than what consumers ultimately had to pay.

"Buying a car is one of the largest purchases many consumers make, and they deserve clear, transparent information about what they will pay," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. "Hidden costs and deceptive pricing undermine informed consumer choice and distort competition. Price transparency is a cornerstone of a fair marketplace and continues to be a top priority for the Trump FTC."

The proposed orderprohibits Stream Auto from misrepresenting the costs or terms of acquiring a vehicle. It also requires Stream Auto's advertisements that include price to prominently display the actual price a consumer must pay for a vehicle, excluding only charges the government requires consumers to pay.

According to the complaint, Stream Auto misled consumers into visiting its dealerships by advertising vehicles online at artificially low prices but then refusing to honor those prices. For example, Stream Auto allegedly charged consumers thousands of dollars in required down payments on top of the advertised price. Stream Auto's websites obscured information about the required down payment by including it in a small-print disclaimer on a "details" page hidden behind a popup and among other disclosures, according to the complaint.

In a March 2026 letter, the FTC warned Stream that "advertising a price that does not reflect all required fees" was an example of an illegal pricing practice. Despite claiming "NO FEES. NO GAMES. JUST CARS" in its promotional material, Stream Auto continued to charge consumers thousands more than the advertised amount through the imposition of various dealer fees and unwanted add-on charges, according to the FTC complaint.

The Commission continues to promote price transparency across several markets, including grocery delivery, rental housing, sports and concert ticketing as well as auto sales and leasing.

The Commission vote authorizing staff to file the complaintand stipulated final order was 2-0. It was filed in the U.S. District Court for the Eastern District of New York.

NOTE: Stipulated orders have the force of law when approved and signed by the District Court judge.