Dealer ads must show a price any buyer can pay, FTC staff says

The advertised price should include mandatory dealer charges

In guidance published September 15, Federal Trade Commission staff says a vehicle's advertised price must be the actual price any consumer can walk in and pay. The guidance says a dealer-required charge belongs in that price, including the full document fee when the dealer requires a buyer to pay it.

The FAQs distinguish those dealer charges from amounts that a federal, state, or local government requires the consumer to pay directly. Taxes, title charges, and registration costs can vary by location or transaction, so ask for an itemized out-the-door figure before agreeing to buy.

A limited discount cannot become the headline price

The staff guidance says the price available to every buyer should be the most prominent amount. A dealer may also show a first-responder rebate, a dealer-financing discount, or another limited offer, but the ad should clearly explain its terms and should not replace the price available to consumers who do not qualify.

Negotiation can still produce a lower price. Optional products can still be offered. The guidance says dealers should not imply that an optional add-on is required, charge for an option a buyer did not accept, or advertise a price that depends on a discount only some shoppers can obtain.

The guidance covers websites, signs, messages, and calls

FTC staff applies the same truthfulness principle across dealership and third-party websites, social media, print ads, roadside signs, phone calls, and text messages. On a webpage that states an amount a consumer may pay, the FAQs say the actual price should be the most prominent amount.

A representative photo may be used for a vehicle still in transit if the ad makes clear that the vehicle is not physically on the lot. Buyers should confirm the vehicle identification number, equipment, availability, and price before traveling or sending money.

How buyers can use the guidance

• Save a dated screenshot or copy of the vehicle ad and every price message.
• Ask for an itemized out-the-door price that separates the vehicle price, government-required charges, optional products, trade-in, and financing.
• Compare the buyer's order and finance contract with the advertisement before signing.
• Question any mandatory dealer fee added above the advertised price and report suspected deceptive pricing through the FTC's official portal.