On the Dash:
- FTC is increasing enforcement and expects dealers to help identify noncompliant competitors.
- All-in pricing, including doc fees, must be clearly disclosed in advertising.
- Noncompliant pricing tactics risk enforcement and loss of competitive trust.
On April 17, a Federal Trade Commission (FTC) official told dealers they can report competitors who violate the recent advertising regulations, according to an Automotive News report.
In March, the FTC issued a massive industry-wide warning letter to 97 dealership groups over potential advertising violations. The agency is now encouraging compliant dealers to assist in identifying noncompliant competitors. Officials say the effort to level the playing field across the retail auto market is underway.
The reporting process
According to officials during the FTC and National Automobile Dealers Association (NADA) webinar on April 6, dealers can submit complaints directly to the FTC.
The FTC notes that deceptive pricing practices, like those of bait-and-switch tactics, harm both customers and compliant dealers alike. Notably, misleading advertising prices can divert traffic away from dealerships that follow the rules. Therefore, regulators remain focused on closing the gap between advertising and actual transaction prices.
Clarification on advertising rules
Ultimately, the FTC clarified that dealers must include document fees in the total advertised price to ensure consumers understand the full cost of purchasing a vehicle. Advertised pricing must reflect the complete out-the-door amount, with any reference to MSRP shown less prominently than the total price.
These requirements apply across all advertising channels, including digital platforms, social media, broadcast, and in-store communications. Dealers are also expected to work closely with automakers and third-party marketplaces to ensure all listings and promotional materials remain compliant.
