Massachusetts AG warns dealers on hidden doc fees in vehicle advertising

On the Dash:

• Massachusetts now requires all mandatory fees, including doc fees, to be included in advertised vehicle prices.
• Separately listing or disclosing doc fees at checkout is considered non-compliant under state law.
• Violations may trigger enforcement action under unfair and deceptive trade practice regulations.

Massachusetts Attorney General Andrea Joy Campbell has issued an advisory warning auto dealerships to include all mandatory fees, such as document preparation fees, in advertised vehicle prices.

The advisory responds to consumer complaints that some dealerships excluded doc fees from advertised prices and later added them to the transaction. Officials say this practice misleads consumers and prevents accurate price comparisons across dealerships.

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While state law requires that all mandatory fees, except taxes, be included in advertised vehicle prices, the AG’s office states that dealerships cannot simply disclose doc fees separately or in fine print. Officials emphasized that doc fees can vary widely and often add several hundred dollars to the final cost.

The advisory follows reports that some dealerships routinely failed to include doc fees in advertised pricing.

Enforcement warning issued

Although consumers often discover the additional charges only at the final stage of the purchase process, the AG says that failing to disclose fees upfront undermines informed purchasing decisions.

Nonetheless, the advisory instructs dealerships to immediately cease noncompliant pricing practices. Violations may result in enforcement under state motor vehicle regulations and unfair or deceptive practice laws. The Attorney General’s office encourages consumers to file complaints through its office or hotline.

AG Campbell emphasized that vehicle purchases need clear, upfront pricing due to their financial importance to consumers. The office reaffirmed that transparency helps consumers compare options fairly across different dealerships. Officials advised dealerships to fully comply to avoid penalties and maintain consumer trust.