The Advertised Car Price Should Be the Price You Pay: New FTC Guidance

The price on the ad should be the price at the counter

Buying a car often comes with a nasty surprise. The price you saw online looks great, but by the time you sit down to sign, the number is much higher. Extra fees. Add-ons you never asked for. Charges you did not expect.

The Federal Trade Commission just published new guidance to push back on that. Staff released a set of frequently asked questions to help auto dealers follow the law on price transparency.

The core message is simple. The advertised price of a vehicle must be the actual price that any consumer can walk in and pay. The only thing that can be added on top is a charge the government requires you to pay.

What this means for you at the dealership

This is not a new benefit check or a rebate. It is a consumer protection rule that helps you keep more of your own money when you buy a car.

When you shop, the advertised price should already include mandatory fees. If a dealer advertises one price and then tries to charge you more through undisclosed fees or add-ons, that may break the law.

The FTC guidance covers how dealers should handle document fees, rebates, discounts, optional items, and vehicles that are still in transit. The point is that the number you see should not balloon at the end.

The FTC is watching, and you can help

This is a real enforcement priority. Earlier this year the Commission sent letters to 97 auto groups nationwide, warning them that advertised prices must be the actual price, including all mandatory fees.

The FTC also continues to sue dealers who advertise one price and then charge more through hidden fees.

If a dealer pulls a bait and switch on price, you can report it. The FTC encourages the public to report potential violations at ReportFraud.ftc.gov, with details about the dealership and what happened. Reporting is free.

A note on trust

The FTC is a government agency that protects consumers. It will never demand money, make threats, tell you to transfer money, or promise you a prize. If someone claiming to be from the FTC does that, it is a scam.

OpenFinancial is not a bank or a government agency. We just point you to the free, official tools so you can protect your own money.

Frequently asked questions

Does this mean car prices will go down?

Not directly. The guidance is about honest pricing, not lower prices. The advertised price must be the real price you can pay, so you should see fewer surprise fees at signing.

What charges can a dealer legally add to the advertised price?

According to the FTC, the only charges that can be added are ones the government requires you to pay. Other mandatory fees should already be built into the advertised price.

What do I do if a dealer charged me more than the advertised price?

You can report it for free at ReportFraud.ftc.gov. Include details about the dealership and exactly what happened with the price and fees.

Is it free to report a dealer to the FTC?

Yes. Reporting to the FTC is completely free. The FTC will never demand money, make threats, or ask you to transfer money.