FTC Publishes Price Transparency FAQs: What the Automobile Industry Needs to Know

The Federal Trade Commission (FTC) published FAQs on price transparency to help the automobile industry comply with the FTC Act. The accompanying press release makes clear that price transparency is a priority for the Trump-Vance FTC and that the guidance is "intended to help dealers and others in the auto industry better understand how the law applies to their advertising."

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, emphasized the agency's commitment: "The FTC Act requires truthful and accurate pricing, which brings significant benefits for consumers and competition. 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."

This Holland & Knight alert summarizes the FAQs' key guidance and provides practical steps auto dealers and industry participants should take to ensure compliance.

Earlier Warning: March 2026 Letters to 97 Auto Groups

The FAQs build on a significant enforcement signal from earlier this year. In March 2026, the FTC sent letters to 97 auto dealership groups nationwide, warning them that the prices they advertise must be the total price – including all mandatory fees – that consumers will be required to pay. The letters cited several examples of illegal pricing practices, including:

• 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 account for 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

Mufarrige underscored the FTC's stance at the time: "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."

The Advertised Price Must Be the Actual Price

The core principle of the FAQs is straightforward: The advertised price of a vehicle must be the actual price any consumer can walk in and pay. The only permissible exclusions are charges that a federal, state or local government agency requires the consumer to pay directly (e.g., taxes, registration fees, title transfer fees).

Everything else must be included in the advertised price, including:

• dealer-required fees that governments authorize but do not mandate
• fees the government requires the dealer to pay but that the dealer passes on to consumers
• all mandatory document or processing fees, regardless of the amount

The FAQs provide an example: If a dealer advertising a $40,000 vehicle would also charge any consumer an $85 document fee, the advertised price must be $40,085. Furthermore, when dealers discount certain fees for some buyers but charge a higher mandatory fee to others, the advertised price must reflect the full document fee that any consumer would be required to pay.

What Dealers Should Do: Conduct a comprehensive audit of all advertised prices across every platform to confirm they include all mandatory fees. Review document fee structures and ensure that the highest mandatory fee charged to any consumer is included in the advertised price. Where state law separately requires document fee disclosures, those requirements must be satisfied in addition to – not instead of – the FTC Act's all-in pricing requirement.

All Advertising Media Are Covered

The FAQs make clear that the FTC Act's truth-in-pricing requirements apply to all advertising formats, including dealership and third-party websites, social media, print advertisements, roadside signs, phone calls and text messages with a dealer's staff. Every consumer touchpoint is subject to the FTC Act.

For internet advertisements specifically, the actual price must be listed as the most prominent amount on any webpage that states any amount a consumer may pay. This applies to inventory-search pages and individual vehicle listing pages. The FTC notes that prominence is not limited to font size – placement, proximity to other confusing language and overall visual emphasis all matter.

What Dealers Should Do: Review advertising practices across all channels, including third-party listing sites, social media accounts and any communications by sales staff via phone or text. Ensure the actual, all-in price is the most prominent figure displayed in every advertisement format. Work with third-party advertising partners to confirm their listings comply, as the FTC holds everyone with control over advertising responsible.

MSRP, Discounts and Rebates

Dealers may include the manufacturer's suggested retail price (MSRP) in their advertisements. However, the actual price must always be the most prominently displayed amount. The FAQs also clarify that dealers cannot advertise a price that is based on a discount or rebate available only to a subset of buyers. For example, a dealer advertising a $34,999 car can offer a $1,000 discount for first responders, as long as the $34,999 price – the price any consumer could walk in and pay – is the most prominent amount displayed and the terms of the discount are clearly disclosed.

The FTC also addresses price negotiations and optional items. The advertised price must reflect the actual price any consumer can pay, whether they negotiate or not. Dealers can offer additional options, but they cannot 1) suggest an add-on is required when it is optional, 2) imply that an installed "option" cannot be removed, 3) misstate the cost of add-ons or 4) include charges for options the consumer did not agree to purchase.

What Dealers Should Do: Review all rebate and discount programs to ensure that advertised prices are not built around incentives available only to a limited group of consumers. Ensure that any conditional discount clearly identifies eligibility requirements and the universally available price is the most prominent. Audit financial and insurance processes to confirm that optional products are clearly presented as optional and pricing is transparent at every stage of the transaction.

Vehicles in Transit, Unavailable Inventory and Representative Photos

The FAQs address several inventory-related advertising practices that have drawn FTC scrutiny. Dealers who advertise vehicles not physically on the lot must clearly disclose that the car is not physically on the lot. The FTC warns that advertising a car that is no longer available simply to draw consumers to the dealership is a deceptive tactic prohibited by the FTC Act. Additionally, cars advertised as "in transit" must actually be in transit and not allocated to fulfilling another consumer's paid-for order.

With respect to photos, dealers may use a representative photo, but it must be truly representative of the vehicle being sold – same make, model, condition and all other material characteristics. For antique or used cars, consumers should reasonably expect the photo to show the exact vehicle offered for sale.

What Dealers Should Do: Implement inventory management protocols that promptly remove sold vehicles from advertising. Ensure that any vehicle advertised as "in transit" is actually in transit and available for purchase. Review the use of stock or representative photos to ensure they accurately depict the vehicle being advertised, paying special attention to used and antique vehicle listings.

Leasing Advertisements and Processing Fees

The FAQs note that processing fees due upfront in a leasing transaction must be included in any advertisement concerning the total amount due upfront. The FTC Act's requirements operate alongside – and do not alter – compliance obligations under the Consumer Leasing Act (Regulation M), Truth in Lending Act (Regulation Z) or other federal laws.

What Dealers Should Do: Review all leasing advertisements to ensure that processing fees and other upfront charges are included in the advertised amount due at signing. Confirm that leasing disclosures satisfy both FTC Act requirements and applicable federal consumer lending laws.

Shared Responsibility: Dealers, Advertisers and OEMs

The FAQs stress that everyone who has control over the advertising is responsible for ensuring compliance with the FTC Act. This includes dealers, third-party advertisers and original equipment manufacturers (OEMs). This broad scope of liability means that blame cannot be shifted to a third-party vendor or platform if advertising violates the law.

Importantly, the FTC reiterates that price transparency is not a new requirement. The FTC Act and Section 5's prohibition on unfair or deceptive acts or practices have been in effect for decades. The FAQs serve as a clear reminder that if any market participant is misleading consumers about price, they are risking FTC enforcement action. The FTC continues to bring lawsuits against auto dealers that mislead consumers by advertising one price only to charge higher amounts through undisclosed fees and charges.

What Dealers Should Do: Review contracts with third-party advertising vendors and platforms to ensure they include compliance obligations and indemnification provisions. Establish clear internal policies that assign responsibility for advertising compliance and implement a regular monitoring program. Consider that the FTC encourages the public to report potential violations, meaning competitors, consumers and former employees all have a direct channel to flag noncompliance.

Holland & Knight Can Help

Holland & Knight's Consumer Protection Defense and Compliance Team regularly advises auto dealers, dealer groups, OEMs and other industry participants on FTC compliance, advertising practices and regulatory enforcement matters. The team has deep experience helping clients navigate the evolving regulatory landscape, including:

• conducting compliance audits of advertising practices across all media
• developing and implementing pricing transparency compliance programs
• responding to FTC warning letters, civil investigative demands and enforcement actions
• training dealership personnel on compliant advertising and sales practices
• advising on the interplay between federal and state consumer protection requirements

For more information or to discuss how these developments may affect your business, please contact the authors or another member of the team.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.