U.S. auto dealers face new pricing transparency requirements

U.S. auto dealers are facing new challenges in maintaining pricing transparency due to recent Federal Trade Commission (FTC) guidance and California’s Combating Auto Retail Scams Act. The FTC guidance specifies that advertised vehicle prices must reflect the actual cost a consumer will pay, excluding only government-mandated charges. This requirement applies across various platforms, including dealer websites, third-party marketplaces, social media, print ads, and direct communications like text messages.

In California, the new law requires total price disclosure in advertisements and initial written communications regarding specific vehicles or financing. Both measures aim to prevent material misrepresentations regarding price and availability.

Implementing these rules is difficult for dealers because vehicle pricing data is often fragmented across disconnected inventory, marketing, and communication systems. Because prices fluctuate based on market conditions and incentives, ensuring every digital and physical channel displays the same accurate, all-inclusive price remains a significant technical hurdle.