Staff of the Federal Trade Commission today published frequently asked questions on price transparency to help the automobile industry comply with the FTC Act. The guidance reiterates that the advertised price of a vehicle must be the actual price that any consumer can walk in and pay to purchase the vehicle, excluding only charges that the government requires the consumer to pay.
âThe FTC Act requires truthful and accurate pricing, which brings significant benefits for consumers and competition,â said Christopher Mufarrige, Director of the FTCâs Bureau of Consumer Protection.â¯âPrice transparency is a priority for the Trump-Vance FTC, and todayâs guidance is intended to help dealers and others in the auto industry better understand how the law applies to their advertising.â
The FAQs provide guidance on such topics as:
- Why price transparency is an enforcement priority for the FTC
- What an advertised price should include
- How to handle document fees, rebates and discounts
- How to account for price negotiations and optional items
- How to communicate price transparently across different mediaÂ
- How to advertise accurately when vehicles are in transit
- How to assist the FTCâs enforcement efforts
Earlier this year, the Commission sent letters to 97 auto groups nationwide encouraging dealers to review their advertising practices and warning them that the prices they advertise must be the actual priceâincluding all mandatory feesâthat consumers will be required to pay.Â
In addition, the FTC continues to bring lawsuits against auto dealers that mislead consumers by advertising one price only to end up charging higher amounts, including through undisclosed fees and charges. The FTC encourages the public, including dealers, to report potential violations at ReportFraud.ftc.gov and to include details about the dealership and the violation.
The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
Source: Press Release Feed
