Auto dealers must include fees when advertising the total price consumers will be required to pay when buying a vehicle, the Federal Trade Commission says in letters sent to 97 dealer groups nationwide.
“The Trump-Vance FTC is committed to preventing auto dealers from misleading consumers with low advertised prices and then adding on mandatory fees at the end of the purchasing process,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a news release. Such fees do not include government charges such as taxes.
The commission will continue monitoring dealerships to ensure transparent competition on price, Mufarrige said.
According to the warning letters, “Examples of illegal pricing practices include:
- Advertising a price that does not reflect all required fees.
- Advertising a price that reflects rebates or discounts not available to all consumers.
- Advertising a price that fails to take into account the amount of an additional required down payment.
- Conditioning the advertised price on consumers using dealer financing.
- Requiring consumers to buy additional items not reflected in the advertised price.
- Advertising unavailable or nonexistent vehicles.”
The warning letters note FTC actions are pending against three dealer groups accused of one or more of the illegal pricing practices, but otherwise do not identify specific dealer groups.
The letters are part of the FTC’s ongoing work to ensure price transparency across multiple markets, including not only auto sales and leasing but also rental housing, ticketing and hotels, and grocery and delivery services, the release said.
