FTC Crackdown on Misleading Car Ads Buoys CarMax, CEO Says -- WSJ
Dow Jones2026/09/29 17:08By Christopher Otts
The Federal Trade Commission's crackdown on misleading car-dealer advertising is playing to the benefit of CarMax, Chief Executive Keith Barr said in an interview.
Around May, car dealers across the country started incorporating documentation fees and other add-ons into their advertised prices, making their vehicles look more expensive relative to CarMax, which charges fixed prices and no dealer fees, Barr said.
CarMax saw a doubling over the summer, for example, in the number of its vehicles labeled "great deal" on Cars.com, he said.
CarMax reported its highest quarterly same-store sales growth since 2022 on Tuesday. The 13% gain was also the result of lower prices, giving CarMax less gross profit per vehicle. Shares were up about 5% Tuesday on the news.
"We're much more price competitive this year than we were a year ago through the FTC compliance and also through our lower price," Barr said.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
September 29, 2026 13:08 ET (17:08 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin Edges Higher as Treasury Yields, Dollar Ease -- Market Talk
Morgan Stanley is tactically bullish on BHP (BHP.US): Two major copper mine catalysts may ignite the stock price in the next two months
Morgan Stanley maintains an "Overweight" rating on BHP Group, with an "attractive" industry outlook, and sets a target price of AUD 69.00 for its shares listed in Australia.
Bank of England hawkish official: Growth exceeds expectations and employment is resilient, which precisely proves that further rate hikes are necessary.
Megan Greene, a policymaker at the Bank of England, stated that the UK's economic growth surpassing expectations and the resilience of the job market indicate that the Bank of England's efforts to curb inflation are still insufficient.
Crypto prices
More
