FTC Red Flags In Reviews, Hybrids Surge In May, Ram’s AI Oops

Episode #1362: Today we look at what customer reviews can reveal before regulators come knocking, why hybrids are suddenly the hottest vehicles on the lot, and how Ram’s AI-generated merch accidentally turned a Toyota Tacoma into a Ram truck—while miscounting the stars on the American flag.

Show Notes with links:

• When the FTC warned dozens of dealerships about potentially deceptive advertising practices, it wasn't entirely out of left field. A new study found those same stores were generating significantly more customer complaints about pricing, advertising, and trust issues than the industry average.
  • Widewail analyzed Google reviews from dealership groups that received FTC warning letters and found they generated significantly more complaints tied to pricing, advertising, and trust issues.
  • Overall ratings didn't tell the story. The FTC-targeted stores still averaged 4.34 stars, only slightly below the industry average of 4.49, showing that strong ratings can mask specific customer concerns.
  • Reviews mentioning pricing were 44% more likely to be negative at FTC-letter dealerships, while complaints about honesty and transparency were also notably higher.
  • The biggest gap showed up in advertising and bait-and-switch complaints. Customers mentioned those issues more than twice as often as reviewers across the broader industry.
  • Widewail Director of Marketing Jake Hughes said, "This is an early warning system. There are signals here that say these issues the FTC cares about are showing up, and it might be worth looking into."

• As EV momentum cools and gas prices heat up, hybrids are having a major moment. Rising gas prices—now averaging $4.26 per gallon—are pushing shoppers toward fuel efficiency.
  • Hybrid sales surged 33% in May compared to last year, while overall new-vehicle sales are down 4.4% through May. 
  • Subaru's hybrid Forester and Crosstrek are outperforming their gas-only counterparts despite carrying a few thousand dollars in additional cost.
  • Automakers are leaning in. Toyota's RAV4 is now hybrid-only, Jeep is bringing back the Cherokee with a hybrid option and no gas-only version, and brands like Nissan and Volkswagen are scrambling to expand hybrid offerings.
  • Subaru of America VP of Sales Troy Poston: "We see this as a growing trend—not only this year, but every year moving forward."

• AI is supposed to save time, not create an accidental brand crossover. Ram found itself in an awkward spot after merchandise sold through its official online store appeared to feature a Toyota Tacoma disguised as a Ram—alongside a mathematically challenged American flag.
  • Merchandise on Ram's official online store featured artwork that appeared to show a second-generation Toyota Tacoma with a Ram badge added to the grille.
  • The issue showed up on multiple products, including a patriotic t-shirt and a large banner, before at least one item was removed from sale.
  • The artwork also included an American flag with only 40 stars instead of 50, suggesting the image may have been generated or heavily assisted by AI.
  • The mistake follows a growing trend of brands using AI-generated imagery in marketing, sometimes with embarrassing results when details slip through review processes.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast  as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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