any medium. This definition encompasses much more than print, website or online advertisements; indeed, social media, text messages, emails and other forms of communication could all be considered advertisements. As a result, dealers should exercise caution in communicating a price for a vehicle in any format or circumstance that links that price to the imposition of tariffs. For example, a dealer should not state that a particular portion of a vehicle’s price is attributable to a tariff paid on that vehicle unless that fact is known by the dealer to be true. A related issue that the FTC has focused on in recent enforcement actions is misrepresenting vehicle prices in advertisements by advertising a low vehicle price and later adding previously undisclosed fees as a customer goes through the buying process. Dealers are also reminded to not coordinate with each other regarding any aspect of how they price the vehicles they offer for sale and should not agree either (1) to add a standard price increase to vehicles due to tariffs or (2) to include a standard gross profit on vehicle sales. These actions are anticompetitive practices prohibited by law. What’s Next NADA presented a webinar on Complying with Federal Advertising Laws at Your Dealership on April 22, 2025. To learn more about the webinar and about protecting your dealership and pricing vehicles fairly and accurately, visit nada.org. Go Deeper NADA offers a variety of compliance resources to dealers, including a Dealer Guide to Federal Advertising Requirements. Visit nada.org to learn more. This memorandum is offered for informational purposes only and is not intended as legal advice. Consult an attorney who is familiar with federal, state and local law addressing these topics and your operations for guidance on the legal sufficiency of your pricing, advertising and disclosure practices. The presentation of this information is not intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service. 16 KENTUCKY AUTO DEALER
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