The Federal Trade Commission delivered its FAQs on automobile industry pricing transparency Tuesday approximately six months after sending 97 warning letters to auto groups nationwide about advertising and pricing transparency violations.
Driving the news: Following the warning letters sent in March, the FTC held webinars with the NADA and NIADA and promised to send out FAQs on its price transparency requirements.
The FAQs cover 14 different topics.
Zooming in: The FAQs start by describing that the price in an advertisement must reflect the number a consumer can “reasonably expect” to pay when walking on the lot.
The FTC is requiring that any fees or charges be included in the advertising price.
Additionally, the FTC states dealers may exclude government fees paid directly by the consumer.
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What they are saying: “The FTC Act requires truthful and accurate pricing, which brings significant benefits for consumers and competition,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in a press release. “Price transparency is a priority for the Trump-Vance FTC, and today’s guidance is intended to help dealers and others in the auto industry better understand how the law applies to their advertising.”
Bottom line: The FAQs provide a quick overview of the FTC’s chief concerns on pricing transparency. Dealers should make sure they are in compliance before enforcers start knocking at the door.
(This is a developing story.)
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