2024 was a busy year for auto fraud — and an even busier year for the regulators and advocates trying to fight it. Here's a clear-eyed look at what happened, what it means, and what consumers should expect heading into 2025.
FTC Enforcement: More Cases, More Money
The FTC continued to put dealerships in its crosshairs. High-profile cases this year included actions against Lindsay Auto Group (a $3.1 million penalty after 88% of customers paid more than advertised), Manchester City Nissan, and several extended warranty operations. The pattern in most of these cases was the same: junk fees, unauthorized add-ons, and deceptive advertising.
The CARS Rule — the FTC's sweeping anti-junk-fee regulation for dealerships — was paused after legal challenges, leaving its future uncertain. That's a significant loss for consumers heading into 2025.
State AG Wins Worth Knowing
State attorneys general picked up some of the slack:
- New York's AG extracted $19 million from Nissan dealers over deceptive financing practices
- Minnesota's AG moved against predatory auto lenders targeting low-income buyers
- California continued racking up auto repair fraud cases, with several fraud ring prosecutions
- Maryland partnered with the FTC on the Lindsay action, a model of federal-state coordination
"The most effective consumer protection in 2024 didn't come from a single law — it came from states and federal agencies working the same cases from different angles."
The Counterfeit Parts Crisis
One of the less-covered stories of 2024 was the ongoing crisis in counterfeit automotive parts. Fake airbags, brake pads, and oil filters continue to enter the supply chain, and crash repair shops — often under insurance pressure to use cheap parts — are sometimes the last line of defense. It's a problem that directly threatens driver safety, and there's still no comprehensive federal solution.
Predatory Towing Surges
Predatory towing complaints increased sharply in 2024. Florida passed legislation targeting the practice, but the problem has spread across multiple states. Consumers are being hit with storage fees that compound daily before they even know their vehicle has been towed.
Right to Repair: Progress and Stalls
Maine passed a meaningful right to repair law. The REPAIR Act gained cosponsors in Congress but did not advance to a vote. EV data access — the ability of independent shops to work on electric vehicles — remained limited, creating a two-tier repair market that disadvantages independent mechanics and, ultimately, consumers.
What 2025 May Bring
- The CARS Rule will likely face continued legal challenges; its fate depends on the political and regulatory climate
- More states are expected to take up right to repair legislation following Maine's lead
- The technician shortage will continue to drive up repair costs and create openings for unqualified operators
- AI diagnostic tools will become more common — and so will AI-assisted fraud
EthicalMechanic.org will keep tracking all of it. The fraudsters aren't taking a year off. Neither are we.