Spotting a car advertised at $25,000, only to find out the actual cost is significantly higher due to added fees, can be a frustrating experience for many buyers.
The United States Federal Trade Commission (FTC) has issued new guidelines on price transparency within the automotive industry, stressing that the advertised price should represent what any consumer would pay to purchase the vehicle, excluding specific charges mandated directly by the government.
Understanding the FTC's Stance on Automotive Pricing
The clarification is particularly relevant for car buyers in Florida, where state laws impose additional requirements on advertised vehicle prices.
To illustrate its point, the FTC provides a straightforward example: If a dealer advertises a vehicle for $40,000 but requires an additional mandatory documentation fee of $85, the FTC insists the advertised price should be $40,085. Such fees should not emerge unexpectedly at the end of negotiations.
According to the FTC, any mandatory fee imposed by a dealership must be included in the advertised price, except for charges directly levied by federal, state, or local authorities. The fee's name does not matter; if it is a necessity for purchasing the vehicle, it must be part of the initial price seen by consumers.
State-Specific Protections in Florida
In Florida, more explicit protections exist for car buyers in cities like Miami, Hialeah, Orlando, and Tampa. Florida's statute 501.976 defines it as an unfair or deceptive practice to advertise a vehicle's price without including fees that a customer must pay.
This statute explicitly mentions items like transportation or destination charges, dealer preparation fees, and charges for treatments such as rustproofing. However, state or local taxes, title fees, and registration can be excluded from the advertised price.
Thus, seeing taxes or registration costs at the transaction's conclusion doesn't necessarily mean the ad was misleading. The issue arises when dealers add mandatory fees that were not included in the initial price used to attract buyers.
Conditional Discounts and Transparent Advertising
Another crucial aspect of the new guidelines pertains to promotions available only to specific customers. For instance, a dealer might offer a $1,000 discount to military personnel, police, firefighters, or other groups, but the FTC mandates that the price accessible to any buyer should be the most prominent in the advertisement.
The same rule applies to discounts tied to financing through the dealer. If a car costs $39,999 for any buyer, it shouldn't be primarily advertised as $37,999 just because a $2,000 discount is available for particular financing.
Online and Social Media Advertising Standards
The FTC's guidance extends beyond print ads and dealership posters. The agency asserts that the same transparency principles apply to websites, third-party platforms, social media, phone calls, and messages from dealership employees.
On websites, the price that any consumer can realistically pay should be the most visible number. This is crucial for online shoppers who might travel to a dealership only to discover they can only secure the advertised price if they qualify for various cumulative promotions.
Optional Extras Should Remain Optional
Optional items like paint protection, maintenance packages, accessories, extended warranties, GAP insurance, and other products can substantially increase a vehicle's final cost.
Dealers can offer these, but the FTC cautions against misleading consumers into thinking an optional product is mandatory, charging for unaccepted products, or claiming that an installed accessory cannot be removed to compel payment.
The agency advises reviewing the final contract closely to ensure it only includes additional products the buyer explicitly agreed to.
Addressing Vehicle Availability Issues
The FTC also addresses a common issue where buyers visit a dealership only to find the advertised car has already been sold. Advertising a vehicle en route to the dealership or stored elsewhere is not necessarily misleading, but the ad must clearly state that the car is not physically available at the location.
The FTC finds it problematic when vehicles already sold or unavailable are advertised solely to lure customers into buying a more expensive model.
FTC's Ongoing Efforts to Combat Deceptive Practices
The FTC's September clarification should not be mistaken for the previously approved CARS Rule, which was later overturned by a federal court and formally withdrawn by the FTC in February 2026.
These new questions and answers from the FTC staff serve as a guide under the FTC Act. The document specifies that it reflects the staff's position and is not binding on the public or the Commission in every situation.
Nonetheless, the longstanding obligation to avoid deceptive advertising remains intact, and the FTC continues to act against unfair practices. In March, the FTC issued warnings to 97 dealership groups across the country to review their advertising and pricing practices. In August, the FTC and Connecticut reached a $4 million settlement in a case involving unauthorized fees and deceptive pricing in vehicle sales.
Precautions for Potential Car Buyers
To prevent surprises, buyers should save a screenshot of the original ad showing the price, vehicle, and, if possible, the VIN; request the total price in writing before visiting the dealership; and scrutinize each contract line before signing.
It's wise to explicitly ask which fees are mandatory, which are government taxes or fees, and which are optional dealer services. Buyers can also request the out-the-door price: the final amount, including taxes, title, registration, and any applicable fees.
If the price unexpectedly changes, comparing the ad with the final purchase sheet and asking the dealer to explain each difference in writing is advisable.
The FTC allows reporting of potential deceptive practices through ReportFraud.ftc.gov. Florida residents can also file a complaint with the Florida Attorney General's Office.
The practical takeaway is clear: an enticing price may come with conditions, but unavoidable fees imposed by the dealer should not surprise the buyer when they are ready to sign the contract.
Understanding FTC Guidelines for Car Buying
What is the FTC's stance on advertised car prices?
The FTC states that advertised car prices should reflect what any consumer can pay to purchase the vehicle, excluding charges directly mandated by the government.
How does Florida law affect vehicle price advertising?
Florida law requires that advertised vehicle prices include all fees that the customer must pay, except for state or local taxes, title fees, and registration.
Can dealers advertise conditional discounts as the main price?
No, the FTC mandates that the price available to any buyer should be the most prominent in the advertisement, and conditional discounts must not be the primary advertised price.