US auto dealer pricing transparency regulations

California has implemented the Combating Auto Retail Scams (CARS) Act to increase price transparency and curb deceptive practices in both new and used vehicle sales. The law requires dealers to disclose total advertised prices upfront and prohibits charging for add-on products that offer no meaningful benefit. For used vehicles priced at $50,000 or less, buyers are granted a three-day cancellation period, subject to mileage limits and a small restocking fee.

These state-level changes coincide with new Federal Trade Commission (FTC) guidance requiring that advertised vehicle prices reflect the actual cost to the consumer, excluding only government-mandated charges. This mandate applies across all platforms, including dealer websites, social media, and direct communications.

Dealers are reportedly facing technical challenges in complying with these requirements, as vehicle pricing data is often fragmented across disconnected inventory, marketing, and communication systems. Maintaining consistent, accurate, and all-inclusive pricing across all digital and physical channels remains a significant hurdle due to fluctuating market conditions and incentives.