The Federal Trade Commission has published a set of Frequently Asked Questions to put the automobile industry on notice about vehicle pricing compliance.
The guidance makes clear that any advertised price must represent what a consumer can actually pay when walking into a dealership to purchase a vehicle.
Only charges mandated by the government may be excluded from the advertised price, according to the commission’s published FAQ document.
“The goal is simple: to ensure that the advertised price reflects reality,” the FTC said, in issuing the document. “That way, consumers can comparison-shop with confidence, and honest dealers can compete fairly on transparent, all-in pricing.”
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, reinforced the legal basis for the action, stating that “the FTC Act requires truthful and accurate pricing, which brings significant benefits for consumers and competition.”
The commission argued that opaque pricing causes widespread harm that ripples through the entire automotive marketplace and beyond.
“When the price a consumer sees in an ad is not the price they will actually pay, the entire shopping experience breaks down,” the FTC said, citing daily complaints and marketplace evidence as the motivation behind its focus.
The commission warned that consumers are left unable to make informed decisions when comparing prices that do not reflect what they will actually be charged at the point of sale.
“And legitimate dealers trying to compete honestly for consumers’ business by advertising truthful, all-in prices are unfairly disadvantaged by competitors willing to advertise artificially low numbers that no customer can actually obtain,” the commission said.
The FAQs cover a broad range of topics, including how to handle document fees, rebates, discounts, price negotiations, optional items, and advertising across different media formats.
The document also addresses more specific questions, such as whether a dealer may use a stock photo of a vehicle in an advertisement and whether MSRP figures or rebates can be included in promotional materials.
One section of the FAQ document actively urges members of the public to report potential pricing violations directly to the commission for enforcement consideration.
The new guidance follows warning letters sent by the FTC to 97 United States dealer groups in March 2026, alongside coordinated efforts with state attorneys general to target unfair and deceptive advertising practices in the automotive sector.
The FAQs are not the product of a formal FTC rulemaking process, unlike the failed “Combating Auto Retail Scams” rule, known as the CARS Rule, which was ultimately vacated by the Fifth Circuit in January 2025.
“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,” the commission stated.