State Law Clarification on Doc Fees in Advertised Prices BY COMPLYAUTO The FTC has clearly stated in its recent public letters and has now reportedly followed up with NADA, reiterating that advertised vehicle prices must include all fees a consumer is required to pay, except government-imposed charges (e.g., taxes, title, registration and license). The FTC considers dealer-imposed documentary fees to be required fees that must be reflected in the advertised price. This means that to ensure you comply with federal advertising requirements, you must include all required fees, including doc fees, in the advertised price. Failure to do so will likely be considered a deceptive practice under Section 5 of the FTC Act. DOES STATE LAW OVERRIDE THE FTC? The open question is: How does your state law on doc fees interact with this federal requirement, if at all? Federal and state consumer protection laws operate concurrently. However, many states have specific advertising statutes that address doc fee treatment, and in some cases, those statutes explicitly permit or even require practices that seem to differ from the FTC’s position. The FTC’s most recent guidance strongly suggests that the doc 13 THE GENERATOR
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