The FTC reiterated its commitment to preventing consumers from being subjected to undisclosed fees, hidden charges or other deceptive pricing practices. “ MADA’S RECOMMENDATION In light of the FTC’s position and ongoing enforcement efforts, MADA recommends that dealers include documentary and service fees in the advertised price of vehicles. The FTC’s warning letters also identified several pricing practices that may violate Section 5 of the FTC Act and other consumer protection laws, including: • Advertising a price that does not include all mandatory fees; • Advertising prices that rely on rebates or discounts unavailable to all consumers; • Advertising prices that fail to account for required down payments; • Conditioning the advertised price on the consumer using dealer-arranged financing; • Requiring consumers to purchase products or services not reflected in the advertised price; and • Advertising vehicles that are unavailable or do not actually exist in inventory. EXAMPLE OF COMPLIANT ADVERTISEMENT A vehicle is advertised for $41,999. The advertised price includes the dealership’s documentary fee and represents the amount any financially qualified customer would pay for the vehicle. Only government-imposed charges, such as sales tax, title and registration fees, are excluded. EXAMPLE OF NON-COMPLIANT ADVERTISEMENT A vehicle is advertised for $41,999, but this total does not include a documentary fee (if charged by the dealership), requires dealer financing to obtain the advertised price, applies rebates that are not available to all consumers, or requires the purchase of additional products not disclosed in the advertisement. MASSIVE FINES AND PENALTIES The FTC is armed with the ability to punish dealers with heavy fines and penalties. The Lindsay Automotive Group settled a complaint brought by the FTC and the Maryland Attorney General for a $3.1 million civil penalty and potentially more than $75 million in restitution to consumers. What should dealers do now? • Audit all current advertising (website, third-party listings, print, social) to verify all-in pricing. • Contact your advertising vendors immediately to update listings. • Train your marketing and F&I staff on the new requirements. • Consider ComplyAuto’s Guardian platform to help stay ahead of FTC advertising requirements. Their tools include advertising compliance workflows, state-specific training modules and disclosure templates designed for dealers. ComplyAuto has also created a dealer guide addressing federal advertising. The guide can be accessed on the ComplyAuto website, complyauto.com. The guide includes examples of advertisements that are in compliance with the FTC’s stipulations. 19
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