FTC Crackdown on Misleading Car Ads Buoys CarMax, CEO Says -- WSJ

By 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.

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September 29, 2026 13:08 ET (17:08 GMT)