FTC Cracks Down on Dealerships for Fake ‘Ghost Car’ Listings

The U.S. Federal Trade Commission (FTC) is taking aim at dealerships that flood online marketplaces with deceptive “ghost car” listings—ads for vehicles that don’t actually exist in inventory or are already sold. Nearly 100 dealers have received warning letters from the agency, signaling a crackdown on the practice of advertising cars that are either not on the lot or have already been snapped up. The move follows the FTC’s broader scrutiny of hidden fees and misleading sales tactics in the auto retail sector.

Ghost listings typically fall into two categories: vehicles advertised at misleading prices to lure buyers into the showroom, or cars listed as available when they’ve already been sold. In some cases, dealerships promote cars that haven’t even arrived yet, dangling them as “coming soon” or available only through a waiting list. Zach Shefska, CEO of car shopping platform CarEdge, told WUSA9 that the core issue is transparency: “If you’re going to advertise and merchandise something for sale, it has to exist, which is a shocking concept.”

Consumer advocates warn that these phantom listings waste time and erode trust in online car shopping. To avoid falling for a ghost car, shoppers are advised to call the dealership directly and confirm the vehicle’s presence using its stock number or VIN. Ads without real photos of the specific car—relying instead on generic stock images—are red flags. While the FTC has not yet outlined specific penalties, the warning letters signal that deceptive advertising won’t be tolerated. For now, buyers are urged to verify listings before visiting the lot, ensuring the car they’re eyeing is actually there.