The Federal Trade Commission (FTC) has initiated an intensified national effort to increase consumer protection against deceptive price advertising and here’s what you need to know about it!
For years, consumers have been subjected to falsely advertised pricing. Prices that came with conditional fees, surprise add-ons, coercion, and even selling non-available or vehicles that don’t exist. [1]
In March 2026, the FTC sent letters nationwide to auto dealers warning that prices MUST be advertised as exactly what the consumer will be paying, including ALL mandatory fees.
Here’s what you can do to protect your dealership against costly repercussions[2]:
- Provide consumers with the total price of vehicles for purchase.
- This includes ALL fees except government fees (taxes, registration, etc.).
- Ensure only accurate and fully disclosed pricing information is advertised.[3]
- This includes websites, commercials, radio advertisements, and social media platforms.
- Make sure that consumers are aware of the conditions tied to advertised prices and understand the breakdown of their total price.
- Disclose all Add-On products.
- Ensure consumers understand fully that add-ons are OPTIONAL.
What do these changes mean for dealers now?
Dealerships should prioritize these organizational changes[4]:
- Understand these new compliance requirements.
- Be transparent and establish a trusting rapport with consumers.
If you don’t, it could cause serious trouble for your dealership!
Remember
The FTC seeks out reports of fraudulence and deception. Not only should you worry about their audits but also reports they may be receiving from your competitors and customers.
Here’s the gist:
- The FTC is going to become more aggressive, so you must become more proactive.
- Instill the importance of regulatory compliance with your dealership personnel.
The answer to these changes is black and white; gain the trust of your consumers by abiding by the FTC’s changes and embrace this new age of price transparency. If you don’t, your dealership could face costly repercussions, including reputational damage.
Is your Dealership in California?
Beginning October 1, 2026, the California Combating Auto Retail Scams (CARS) Act will require the following of California car dealers:
- Must offer a three-day right to cancel retail sale or lease of used vehicles under $50,000 (further restrictions apply).
- Must update their advertising practices to reflect new “total price” and customer disclosure requirements, prohibiting material misrepresentation to customers.
- Must discontinue the sale of add-on products or services if the customer will not benefit from said purchase.
- Must keep two-year retained compliance records.
- Must NOT charge for a service contract that can be voided due to pre-existing conditions.
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Automobile Resources and Guidelines
Federal Trade Commission
Lindsay Automotive Group
[1] FTC Warns 97 Auto Dealerships Groups About Deceptive Pricing (03/13/2026) [2] Federal Trade Commission Act [3] INFORM Consumers Act [4] Combating Auto Retail Scams TRR