claims may seem harmless, but they raise significant regulatory and legal red flags. TARIFF MESSAGING MUST BE SUBSTANTIATED Dealers are free to raise or lower prices in response to supply, demand or margin pressure. But the FTC and state AGs expect substantiation for any claim about why a price changed. That means you need to be able to show a direct relationship between a tariff and the price increase. Saying “this vehicle’s price increased due to tariffs” implies that you know the cost impact. If the vehicle wasn’t subject to a tariff, or if the price increase was due to something else, that claim becomes misleading. NOTE, HOWEVER — many state laws strictly regulate dealer fees, or “doc” fees and these fees may be the only type of fee a dealer may be legally permitted to add to a vehicle price. Adding a “tariff fee” — even if substantiated — may implicate these state fee regulations, and dealers should exercise caution before adding this or any other fee to the price of a vehicle. REMEMBER — “ADVERTISEMENTS” INCLUDE MORE THAN JUST WEBSITES The definition of “advertisement” under federal (and most state) law is so broad that basically any discussion of a vehicle or a price with a consumer can be considered an advertisement. That includes vehicle display pages, email price quotes, social media and virtually any other form of consumer communication. Remember, even statements made verbally to consumers about tariffs (or any other material price term) could be deemed deceptive if inaccurate and substantiated. MADE IN THE USA CLAIMS: A HIGH STANDARD One related potential issue in this context are claims about domestic manufacture of vehicles — whether related to tariffs directly or not. Some OEMs and dealers may lean into patriotic messaging which highlights vehicles as “Made in America.” But, the FTC’s “Made in the USA” standard is strict: To lawfully make an unqualified U.S.-origin claim, a product must be “all or virtually all” made in the United States. That includes parts, processing and assembly. Final assembly alone isn’t enough if key components come from abroad. Dealers repeating or amplifying origin claims should verify the claim’s accuracy. False U.S.-origin claims can violate Section 5 of the FTC Act and lead to enforcement actions, even if the original claim started with the manufacturer. For a deeper dive on this issue, see ComplyAuto’s guide, “Navigating Made in the USA Claims in Dealership Advertising,” by scanning the QR code. https://complyauto.com/ 2024/01/03/navigatingmade-in-the-usa-claims-indealership-advertising/ ACTION ITEMS FOR DEALERSHIPS To navigate these risks, dealerships should: • Review all advertising content to ensure no price increase is attributed to tariffs unless verifiably true (and consistent with state dealer fee laws). • Train staff to avoid speculative or generalized pricing explanations tied to tariffs or government action, or conversely, any promises about “Made in the USA” or domestic content, in the context of tariffs or otherwise. • Audit website, social and BDC communications to ensure FTC-compliant language. • Avoid phrases like “due to tariffs,” “government-mandated,” “new surcharge” or “made in America,” unless legally accurate. Remember, advertising law hinges on consumer perception. If a customer could reasonably believe that a price you are advertising or charging is higher because of a tariff, and that’s not factually true, you’ve got a potential compliance problem. Price freely, but message carefully. COMPLYAUTO CAN HELP ComplyAuto offers the tools and guidance dealerships need to stay compliant in shifting regulatory environments. From real-time ad review and policy vetting to F&I deal accuracy and staff training, we help you stay out of trouble while focusing on your bottom line. With compliance automation, policy insight and cutting-edge risk detection like Guardian, along with powerful tools like DealCheck AI, ComplyAuto gives you peace of mind and the confidence to price it right. Reach out today to learn more by scanning the QR code. https://complyauto.com/ schedule-demo/ 17 Arkansas Auto Dealer
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