Below is a summary of key takeaways for New Hampshire dealers, along with additional detail shared during the webinar.

Dealers Take Note: Make Necessary Changes

Why the FTC Took Action
The FTC emphasized that the warning letters were not issued for minor or technical violations. Instead, they targeted advertising practices where a price was presented prominently, but material terms or fees were buried in fine print or not clearly disclosed.

The agency also suggested that failing to display a total price at all may itself be considered deceptive.

Admin Fees Must Be Included
The FTC made clear that administrative (admin) fees must be included in the advertised price.

• The FTC is not regulating the amount of the admin fee, only how it is disclosed
• Dealers may disclose the admin fee separately, but it must be less prominent than the total price
• The FTC emphasized that no state requires an admin fee — only authorizes it, reinforcing that it must be included in the advertised price
  

The “Total Advertised Price” Standard
At the center of the FTC’s guidance is a clear expectation:

The most prominent price must be the one that 100% of consumers can walk in and pay — excluding only government-imposed fees and taxes. (example: Title Fee)

The FTC applies a “reasonable consumer” standard, meaning how an ordinary buyer would interpret the advertisement.

Additional clarifications include:

• The all-in, out-the-door price must be more prominent than any other price, including MSRP
• MSRP may still be displayed, but it cannot be the primary price
• Dealers cannot avoid this requirement by omitting a price altogether

What Counts as Advertising
The FTC reiterated that advertising is broadly defined and includes:

• Website listings and vehicle detail pages
• Third-party platforms and lead providers
• Social media and paid search
• Radio, television, and direct mail
• Oral representations on the lot

If a dealer controls the message, the dealer is responsible.

Rebates, Discounts, and Conditional Pricing
The FTC drew a clear line on conditional pricing:

• The advertised price must reflect what all consumers can qualify for
• Conditional rebates (military, student, financing, etc.) should be:
• Clearly disclosed
• Presented separately
• Less prominent than the all-in price

Similarly, pricing tied to dealer financing cannot be the primary advertised price.

Inventory & Optional Add-Ons
The FTC advised caution in areas that may create consumer confusion:

• Vehicles no longer available should be removed from advertising as soon as practicable
• In-transit vehicles may be advertised if availability is clearly disclosed and delivery is imminent, but the FTC noted this is “very fact-specific”

For add-ons:

• Truly optional products may be excluded from the advertised price
• It must be clear they are not required to purchase the vehicle
• If an add-on is required, it must be included in the advertised price

Responsibility for Third-Party Advertising
The FTC reinforced that dealers are responsible for advertising they control, including content appearing on third-party platforms.

At the same time, the FTC indicated it will consider the dealer’s degree of control when evaluating enforcement, and that third-party providers also have responsibility to ensure compliance.

Additional FTC Guidance (via NADA)
The following is a direct summary of Bureau of Consumer Protection Director Chris Mufarrige’s responses during the webinar. Source: National Automobile Dealers Association (NADA).

FTC Authority to Regulate Dealer Advertising: Mufarrige explained that the FTC has authority to regulate dealer advertising practices as unfair or deceptive acts or practices (UDAP) under Section 5 of the FTC Act. This prohibits advertisements that materially mislead consumers or fail to clearly and conspicuously disclose material terms.

Which Dealers Received the Warning Letter: Dealers who received the letter were allegedly displaying a price while burying substantial fees in fine print, which consumers could not easily find or understand.

Definition of Advertising: Advertisements can be very broad, including social media, online posts, television commercials and radio messages. A dealer’s oral representations can also constitute advertising. The FTC reviews an advertisement by asking what a reasonable consumer would understand.

Responsibility for Advertising: Dealers are responsible for their own advertising and messages they can control. Mufarrige acknowledged there are issues related to control by entities such as OEMs and third-party platforms, and the FTC is open to learning more. The entity that controls the ad content is ultimately responsible for its accuracy.

Advertised Price: The most prominent price in an advertisement must be the all-in, out-the-door price available to all consumers. This price must reflect everything, including the admin fee. Dealers can separately disclose the admin fee, if it is less prominent. Only government fees can be excluded from the price. If the consumer purchases a vehicle for a lower price than advertised, that is permissible.

State Admin Fee Statutes: The FTC is not seeking to regulate the amount of a admin fee; rather, it is focused on how the admin fee is disclosed in advertisements. In general, there is no conflict between state laws and the FTC’s expectation that admin fees be included in the advertised price.

Advertising MSRP: The most prominent price must be the total price a consumer will pay. MSRP may be displayed, but it must be less prominent.

Government Charges: Government fees are those required by a government authority, such as sales tax. Fees not required by the government must be included in the advertised price.

Credit and Lease Advertising: These principles also apply to lease advertisements and do not replace requirements under Regulation M and Regulation Z.

Advertising Rebates and Discounts: The most prominently displayed price may not include rebates or discounts that are not available to all consumers. These may be advertised separately if clearly disclosed.

Conditioning Price on Financing: The primary advertised price may not be conditioned on dealer financing. Conditional pricing may be shown if properly disclosed and less prominent.

Unavailable or Non-Existent Vehicles: Vehicles that are no longer available should be removed from advertising promptly. Dealers should use caution when advertising in-transit vehicles unless delivery is imminent.

Optional Products: Optional products may be excluded from the advertised price only if it is clear they are not required.

Future FTC Enforcement: The FTC intends to actively pursue dealers that are not complying with Section 5.

NHADA Takeaway
The FTC’s position is clear: price transparency is the priority.

Dealers should review their advertising across all channels to ensure that:

• The most prominent price reflects the true, all-in cost
• That price is one all consumers can qualify for
• Fees and conditions are not hidden or minimized
• Messaging aligns with how a reasonable consumer would interpret the offer

NHADA will continue to monitor developments and share updates as additional FTC guidance, including forthcoming FAQs, becomes available.

This update is offered for informational purposes only and should not be considered legal advice. Consult an attorney or compliance expert familiar with the subject matter and your operations for advice on the legal sufficiency of your advertising practices.
NHADA Attorney Partners
NHADA Diamond Compliance Partner ComplyAuto