PRICE IT RIGHT Tariffs and Truth-in-Pricing By ComplyAuto A wave of pending tariffs on imported vehicles and parts is reshaping pricing dynamics across the automotive industry. Some OEMs have announced they are adjusting MSRPs, supply chains are shifting, and inventory pressure is building. In the middle of it all, dealers face a critical challenge: how to explain potentially rising prices without making legally risky claims. It’s tempting to point to tariffs since tariffs are in the headlines and on customers’ minds. Not only is this a potentially risky strategy from a public relations perspective, it also raises potential regulatory risks for the dealership. Basically, unless a dealership knows that a specific vehicle’s price increase is directly tied to a tariff, advertising a price increase based on “tariffs” can trigger a deceptive advertising claim under Section 5 of the FTC Act and various state advertising laws. ADVERTISING CLAIMS AND ATTRIBUTION When vehicle prices rise, dealerships often feel compelled to explain why. And in a high-tariff environment, some are tempted to attribute a price increase or a market adjustment to a tariff. That’s where trouble begins. According to the FTC, price advertising must be truthful, non-deceptive and substantiated. Any claim made in an advertisement, including the reason for a price change, must be truthful, not misleading and supported by evidence. States also have similar requirements for advertising. For example, under the Maryland Consumer Protection Act, a dealer may not falsely attribute a price increase to tariffs if the claim misleads consumers or omits material facts, such as the absence of any actual tariff-related cost increase. Here’s the takeaway: If your dealership states or implies that a vehicle is more expensive because of a government-imposed tariff, you must be able to prove that the tariff directly affected the cost of that specific vehicle. General market conditions, assumptions or headlines are not enough. WHAT THIS MEANS FOR DEALERSHIPS If you’re considering messaging like “prices adjusted due to tariffs” in your showroom, on your website or in digital ads: pause. These 16 Arkansas Auto Dealer
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