The Federal Trade Commission (FTC) has published a set of frequently asked questions (FAQs) aimed at helping the automobile industry adhere to price transparency regulations as mandated by the FTC Act. This guidance emphasizes that the price advertised for a vehicle must reflect the actual amount a consumer can pay, excluding only government-required charges.

Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, highlighted the importance of truthful pricing, stating that it benefits both consumers and competition. The FTC is prioritizing price transparency, and the new guidance is designed to clarify how the law applies to auto dealers' advertising practices.

The FAQs cover various topics, including the components of an advertised price, handling document fees, rebates, and discounts, as well as how to communicate prices transparently across different media. They also address how to advertise accurately for vehicles that are in transit and how dealers can assist in the FTC’s enforcement efforts.

Earlier this year, the FTC reached out to 97 auto groups nationwide, urging them to review their advertising practices and warning that advertised prices must include all mandatory fees. The Commission is actively pursuing legal action against auto dealers that mislead consumers by advertising lower prices while charging higher amounts through undisclosed fees.

The FTC encourages the public and dealers to report any potential violations through their dedicated reporting platform, ensuring that consumers are protected from misleading advertising practices.