FTC Settles With Stream Auto Over Misleading Car Ads
A federal settlement requires Long Island dealer Stream Auto Outlet to display the full price consumers must pay in its advertisements.
Updated on Nov. 11, 2026 in Buying/Selling
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The Federal Trade Commission reached a settlement agreement with Stream Auto Outlet over alleged misleading car price advertisements, filed in the United States District Court for the Eastern District of New York on Nov. 9. The FTC alleges the dealer's "internet special" prices omitted down payments and other fees.
Why it matters
The proposed order requires Stream Auto ads to prominently display the actual price a consumer must pay, a remedy aimed at making advertised car prices comparable to the final cost. The agreement becomes legally binding if signed by a district court judge.
Stream Auto Outlet's website disclaimer lists a $3,995 down payment for the advertised internet special, while the dealer allegedly told one buyer a $4,000 warranty was needed to avoid thousands in added cost. The company operates three Long Island stores in Amityville, Islip and Valley Stream.
The players
Federal Trade Commission
The federal agency responsible for enforcing consumer protection laws against deceptive advertising and unfair business practices nationwide.
Stream Auto Outlet
A Long Island car dealership operating stores in Amityville, Islip and Valley Stream that is the subject of the FTC settlement over its advertised prices.
The details
The FTC warned Stream Auto Outlet about its ads in March 2026, and the dealer added a "no fees policy" assurance to its website afterward. The FTC alleges those changes only concealed the unlawful practices rather than eliminating them, prompting the settlement roughly eight months later.
Timeline
March 2026: FTC sends a warning letter to Stream Auto Outlet about its advertisements.
Nov. 9: The settlement agreement is filed in the Eastern District of New York.
Roadmap
The settlement follows a pattern of FTC scrutiny of drip pricing in auto sales, where advertised prices exclude mandatory fees that only appear later in the transaction. It signals that federal regulators will pursue dealers whose disclosures remain buried even after a warning letter.
Car shoppers who see an advertised "internet special" should ask for the full out-the-door price, including down payment, fees and any required add-ons such as warranties. The FTC settlement does not provide refunds to buyers who already purchased from Stream Auto Outlet.
The takeaway
Before committing to a dealership, compare the total out-the-door price, including required down payments and add-on products, rather than relying on the advertised headline figure.
Further reading
For more on how advertised car prices compare to what buyers actually pay, see New York Buying/Selling.
Source note: This article includes information reported by Newsday.
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