On September 15, 2026, the Federal Trade Commission (FTC) announced the publication of its long-awaited guidance for new car dealers on price transparency in advertising. Presented in the form of answers to Frequently-Asked Questions, the FTC’s guidance is intended “to help the automobile industry comply with the Federal Trade Commission Act.” The guidance follows on the heels of warning letters sent by the FTC to 97 U.S. dealer groups in March 2026, together with continued efforts by the FTC, in coordination with state attorneys general, to crack down on allegedly unfair and deceptive advertising in the automotive industry.

FTC Focuses On “Price Transparency”

According to the FTC, the FAQs “reflect staff’s views and explain how the FTC Act governs pricing practices so that consumers can trust the prices they see, and legitimate businesses can compete on a level playing field.” The FAQs are not the product of any FTC rulemaking process, as with the failed effort by the FTC to implement a formal set of rules with the “Combating Auto Retail Scams” or “CARS” Rule, ultimately vacated by the Fifth Circult in January 2025. Rather, the FAQs describe how the FTC staff intends to evaluate dealer advertising in the exercise of its discretion with respect to enforcement of Section 5 of the FTC Act, which generally prohibits unfair and deceptive acts and practices, including advertising.

Required Elements in Dealer Advertising

The FAQs explain that one of the FTC’s enforcement priorities is ensuring that advertised pricing is “transparent and truthful,” and is driven by the FTC’s commitment to ensure that “the price consumers see in advertising is the actual price they will pay, aside from required government charges like taxes.” According to the FTC, consumers should be able to “comparison shop” between different dealers before “investing time, arranging transportation, or even negotiating” to purchase a particular, and so the FAQs emphasize that “[w]hen a consumer sees a price in a car advertisement, they reasonably expect that number to reflect what they will actually have to pay when they walk onto the lot.”

To do that, a dealer must advertise the “actual price,” inclusive of all fees other than government-required charges. The FAQs also emphasize that the FTC Act requires that this “actual price” must be the “most prominent amount in an advertisement.” Dealers can include the Manufacturer’s Suggested Retail Price (MSRP) in advertising, so long as that price is “less prominent than the actual price.” Dealer advertising also can include discounts offered to some, but not all, customers so long as the actual price available to all customers is the most prominently displayed price. The FAQs offer, as an example, a dealer advertising a car with an actual price of $39,999 car with a $2,000 discount available for using dealer financing. So long as the $39,999 is the most prominent price in the advertisement, the dealer can advertise the $2,000 discount, as well.

Responsibility for Accuracy in Advertising

The FAQs explain that “everyone who has control over the advertising is responsible for making sure the ads state the actual price as the most prominent amount.” Dealers are responsible for making sure the pricing information they are advertising is accurate, and when working with third parties, must provide the actual price to those third parties. The FTC staff also warned in the FAQs that “[t]hird party advertisers should make sure this accurate price appears the most prominently when any amount is stated.”

With respect to manufacturers, the FAQs advise that OEMs “should make sure none of their policies or practices conflict with these requirements” and also bear in mind that everyone who controls dealer advertising “is responsible for making sure ads state the actual price as the most prominent amount.” Of course, dealers are independently owned and operated businesses, and so the “control” any particular OEM has over advertising by its dealers is typically limited to the policies the manufacturer adopts with respect to the presentation of the brand in advertising.

Finally, the FAQs advised that “[p]rice transparency is not a new requirement” and that requirements of Section 5 of the FTC Act “have been in effect for decades.” Again, the FAQs are not the product of any rulemaking process, but rather are a description of how the FTC uses its enforcement discretion in determining whether dealer advertising is misleading. The FTC warned that it “will continue to monitor the marketplace to protect both consumers and competition,” and encouraged the public to report potential violations to the FTC.