NADA has released an updated version of A Dealer Guide to Federal Advertising Requirements. The guide provides a practical overview of the federal laws governing dealership advertising, including the Federal Trade Commission (FTC) Act, the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and other requirements.
In March, the FTC sent letters to 97 dealerships warning them of potential violations of federal advertising laws. The FTC has said it intends to bring enforcement actions against dealerships that fail to advertise vehicles with clear and transparent pricing, including a prominently displayed price that includes all non-government fees and is available to all customers. The FTC has made price transparency a priority across all industries, including auto sales.
The updated guide reflects recent FTC enforcement developments, including all-in pricing, endorsements, social media, privacy, ad examples, and a dealer checklist.
On Sept. 1, NADA will host a webinar with attorneys from Kelley, Drye & Warren LLP, who helped revise the guide, to discuss the guide, major updates, and help dealers gain a deeper understanding of compliance with federal advertising laws. You can register here.
The FTC is developing FAQs to supplement the guidance provided in the warning letters and during NADA webinars. NADA may provide further updates to the guide after the FAQs are released.
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