Staff of the Federal Trade Commission today published frequently asked questions on price transparency to help the automobile industry comply with the FTC Act. The guidance reiterates that the advertised price of a vehicle must be the actual price that any consumer can walk in and pay to purchase the vehicle, excluding only charges that the government requires the consumer to pay.
“The FTC Act requires truthful and accurate pricing, which brings significant benefits for consumers and competition,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Price transparency is a priority for the Trump-Vance FTC, and today’s guidance is intended to help dealers and others in the auto industry better understand how the law applies to their advertising.”
The FAQs provide guidance on such topics as:
Earlier this year, the Commission sent letters to 97 auto groups nationwide encouraging dealers to review their advertising practices and warning them of their responsibility to advertise the actual price—including all mandatory fees—that consumers will be required to pay.
In addition, the FTC continues to bring lawsuits challenging auto dealers that mislead consumers by advertising one price only to end up charging higher amounts, including through undisclosed fees and charges. The FTC encourages the public, including dealers, to report potential violations at ReportFraud.ftc.gov and to include details about the dealership and the violation.
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