In March, the Federal Trade Commission (FTC) intensified its scrutiny of automobile advertising practices by sending warning letters to 97 dealer groups nationwide. The letters emphasized a straightforward message: The advertised price of a vehicle should include all mandatory fees a consumer must pay to purchase that vehicle. According to the FTC, the only charges that may be excluded from an advertised price are required government fees, such as taxes, title and registration charges. The agency urged dealers to review their advertising and pricing practices to ensure compliance with federal law. The FTC reiterated its commitment to preventing consumers from being subjected to undisclosed fees, hidden charges or other deceptive pricing practices. “The FTC will remain focused on monitoring auto dealerships to ensure that the market functions efficiently and competitors are transparently competing on price,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. FTC MAKES ITS INTENTIONS CLEAR IN WEBINAR FOR DEALERS Many dealers received additional clarity during a webinar with the FTC, hosted by the National Automobile Dealers Association (NADA). Dealers should carefully review their advertising practices and ensure that the price displayed to consumers accurately reflects the amount a customer will be required to pay for the vehicle. WHAT ABOUT DOCUMENTARY FEES? Perhaps the most significant takeaway for Mississippi dealers is the FTC’s position on documentary and service fees. In short, the FTC expects documentary fees to be included in the advertised vehicle price. Regulation 8, adopted by the Mississippi Motor Vehicle Commission, governs the disclosure of documentary and service fees. While the documentary/service fee must be included in the prominently advertised price, the amount of the fee does not have to be disclosed separately in the advertisement. FTC Signals New Focus on VEHICLE PRICING TRANSPARENCY By ComplyAuto 18
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