Earlier this year, the Federal Trade Commission (FTC) sent warning letters to 97 dealerships across the country regarding advertising practices. In response, the National Automobile Dealers Association (NADA) hosted a webinar with FTC Bureau of Consumer Protection Director Chris Mufarrige to provide dealers with greater clarity on the agency’s expectations and enforcement priorities.

The message from the FTC was clear: Regulators are placing increased focus on pricing transparency and advertising accuracy, particularly for advertised vehicle prices, administrative fees, rebates and financing-related offers.

As NHADA’s representative to NADA, I wanted to share the key takeaways from that discussion and considerations for New Hampshire dealers as they review their advertising practices.

The Biggest Takeaway: Admin Fees Must Be Included

The most significant issue for many New Hampshire dealers involves administrative fees.

During the NADA webinar, FTC officials made clear that if a dealer charges an administrative fee that every customer must pay, that fee should be included in the advertised vehicle price. According to the FTC, consumers should see the full price they can expect to pay, excluding only taxes and government-imposed fees.

Importantly, the FTC is not attempting to regulate the amount of an administrative fee. Dealers may continue to charge administrative fees where permitted by state law. The agency’s focus is on how those fees are disclosed to consumers.

Dealers may still disclose the administrative fee separately, but that disclosure should be less prominent than the total advertised price. The FTC also emphasized that while many states authorize administrative fees, no state requires them, reinforcing the agency’s position that such fees belong in the advertised price rather than being added afterward.

For many dealers, this is the most important practical takeaway from the FTC’s recent guidance.

The Price You Show Should Be the Price They Pay

The FTC repeatedly emphasized a simple principle: The most prominent advertised price should be the price available to consumers.

The agency’s concern extends beyond administrative fees. Any mandatory dealer-imposed charge that a consumer must pay to purchase a vehicle should generally be reflected in the advertised price. According to the FTC, consumers should not have to navigate fine print to determine the actual cost of a vehicle.

Similarly, the FTC stated that the primary advertised price should not include rebates, discounts or incentives that are unavailable to all consumers. Military rebates, loyalty incentives, financing discounts and other conditional offers may still be advertised, but they should be disclosed separately and presented less prominently than the vehicle’s advertised selling price.

A useful question for dealers to ask is: Can every customer reasonably qualify for the advertised price?

If the answer is no, the FTC expects the conditions to be clearly communicated and not overshadow the vehicle’s actual selling price.

Advertising Means More Than Your Website

Another important clarification provided during NADA’s discussion with the FTC involved the agency’s broad definition of advertising.

The FTC explained that dealer websites, vehicle detail pages, third-party listings, social media, digital advertising, direct mail, television, radio and even oral representations can all constitute advertising, depending on what a reasonable consumer would understand from the communication.

Just as importantly, dealers remain responsible for advertising content they control, even when that content appears on third-party platforms or is managed by outside vendors.

As dealerships increasingly rely on inventory syndication, digital marketing agencies and automated advertising tools, reviewing advertising content across all channels is becoming more important than ever.

Where Dealers Commonly Run Into Trouble

During the webinar, the FTC highlighted several practices that frequently draw scrutiny:

• Displaying MSRP more prominently than the actual selling price
• Advertising prices or payments tied to financing conditions that are not clearly disclosed
• Treating required add-on products as optional
• Keeping sold vehicles advertised for extended periods
• Advertising vehicles that are no longer available
• Burying fees, qualifications or conditions in fine print

While every situation is unique, these examples provide valuable insight into the areas regulators are actively reviewing.

The NHADA Takeaway

The FTC is continuing to focus on dealer advertising practices, making now a good time for New Hampshire dealers to review their advertising and confirm that:

• The advertised price is truly all-in.
• Administrative fees are included in advertised pricing.
• Incentives and qualifications are clearly disclosed.
• Financing-related conditions are properly disclosed.
• Advertising is accurate across all platforms.

NHADA will continue working with NADA to monitor developments and provide members with practical compliance guidance as advertising standards evolve.