FTC Issues FAQs On Automobile Pricing Transparency

Last month, the FTC published frequently asked questions addressing automobile pricing transparency under the Federal Trade Commission Act. The guidance reiterates that advertised vehicle prices must reflect the actual amount consumers can pay to purchase a vehicle, excluding only government-required charges. The FAQs clarify how existing requirements apply to vehicle advertisements, mandatory fees, discounts, and other pricing practices.

The FTC emphasized that the guidance reflects existing legal obligations rather than new regulatory requirements. The FAQs address several advertising and pricing practices that may raise compliance concerns. Specifically, the guidance:

• Clarifies advertised price requirements. Dealers must include all mandatory fees in advertised vehicle prices, including document and processing fees, even when those fees are authorized but not required by state law.