NYC sues CarGurus over "Great Deal" labels and hidden fees
2 min read
New York City says CarGurus' deal ratings and AI chatbot misled shoppers by leaving out mandatory dealer fees.
New York City's Department of Consumer and Worker Protection (DCWP) has sued CarGurus, the online car-shopping site, the city announced on Oct 15. The city says CarGurus misled shoppers by labeling listings "Good Deals" or "Great Deals" based on prices that left out hundreds or thousands of dollars in fees, down payments and trade-in requirements.
According to DCWP, those extra costs were often tucked at the bottom of a listing or in partly hidden text boxes that only fully opened after a click to another page or pop-up. The city says CarGurus' AI chatbot added to the problem by generating its own lists of supposed deals.
The city gave an example. In June 2026, it says, CarGurus listed a 2018 Honda from Elite Mitsubishi as $2,212 below market value, a "Great Deal." Mandatory fees itemized at the bottom of the listing meant the real price was $1,473 above market value.
DCWP says it found more than 2,000 violations of the city's Consumer Protection Law during its investigation. The lawsuit, filed in New York State Supreme Court, seeks to permanently stop the practices and impose civil penalties. The city also says CarGurus didn't do enough to enforce its own rules against deceptive listings. These are the city's allegations; the case has not been decided.
It's part of a broader push. DCWP cites an analysis of more than 40,000 online listings that found mandatory fees added about $1,100 on average, and in July it proposed a rule requiring businesses to advertise the full price upfront, including all required fees.
The lesson for shoppers anywhere: a "great deal" badge isn't the final price. Before you visit a dealer, ask for an itemized, out-the-door price in writing, including every fee.