Leader Automotive's bait-and-switch ads drew the largest FTC dealer penalty ever

Ten Illinois dealerships run by Leader Automotive Group advertised new and used cars online at low prices meant to pull buyers in — often for cars that were already sold. Once a customer was in the door, the sales pitch pushed more expensive vehicles wrapped in 'junk fees and surprise market adjustments.'

The practices went well beyond the bait. The FTC and the Illinois Attorney General alleged the group charged for expensive add-ons without consent, added exorbitant 'reconditioning' fees that a former sales manager called fake, and required employees to post fake positive Google reviews while threatening to withhold bonuses. One dealership would not hand a customer the keys to a car she had bought until she posted a good review.

The group also sold cars built for the Canadian market in its U.S. dealerships without telling buyers, and advertised them as covered by warranties that importing typically voided. In December 2024 the FTC announced a $20 million judgment against the group — the largest it has ever secured against an auto dealer — with the money going to refund harmed consumers.