{"id":3677,"date":"2026-09-23T05:41:27","date_gmt":"2026-09-23T09:41:27","guid":{"rendered":"https:\/\/salaryfor.com\/blog\/?p=3677"},"modified":"2026-09-23T06:55:46","modified_gmt":"2026-09-23T10:55:46","slug":"the-ftc-is-now-requiring-car-dealerships-to-advertise-the-real-price-ending-teaser-pricing","status":"publish","type":"post","link":"https:\/\/salaryfor.com\/blog\/the-ftc-is-now-requiring-car-dealerships-to-advertise-the-real-price-ending-teaser-pricing\/","title":{"rendered":"The FTC Is Now Requiring Car Dealerships to Advertise the Real Price \u2014 Ending Teaser Pricing"},"content":{"rendered":"\n

By SalaryFor.com – real salaries for all professions<\/a><\/em><\/p>\n\n\n\n

For decades, car dealerships have advertised artificially low teaser prices that excluded doc fees, dealer add\u2011ons, prep fees, and mandatory packages. Buyers often discovered the real cost only at the end of the process \u2014 sometimes thousands of dollars higher than the advertised price.<\/p>\n\n\n\n

That era is finally ending.<\/p>\n\n\n\n

The Federal Trade Commission (FTC) is now moving forward with a rule that requires dealerships to advertise the real, all\u2011in price of a vehicle. This includes doc fees, dealer add\u2011ons, and mandatory packages \u2014 everything except sales tax, which varies by municipality and cannot be standardized.<\/p>\n\n\n\n

Here\u2019s what the new rule means, why it\u2019s happening now, and how it will change the car\u2011buying experience.<\/p>\n\n\n\n

What Dealerships Must Now Include in the Advertised Price<\/strong><\/h2>\n\n\n\n

Dealerships must now include doc fees, dealer add\u2011ons, mandatory protection packages, prep fees, VIN\u2011etching charges, nitrogen tire fees, and any other non\u2011optional charges in the advertised price. Sales tax is the only excluded item because it varies by city, county, and state.<\/p>\n\n\n\n

The advertised price must now reflect the true cost before tax \u2014 not a teaser number no buyer can actually pay.<\/p>\n\n\n\n

Used Cars and Buy\u2011Here\u2011Pay\u2011Here Lots Are Covered Too<\/strong><\/h2>\n\n\n\n

Buyers should also know that the FTC\u2019s new pricing\u2011transparency rule applies to both new and used vehicles, including certified pre\u2011owned units, fleet resales, and even the small buy\u2011here\u2011pay\u2011here lots that have historically relied on the most aggressive teaser pricing and hidden\u2011fee practices. These lots must now advertise the real, all\u2011in price before tax just like traditional dealerships, and they can no longer lure buyers with a low headline number only to reveal doc fees, prep fees, dealer add\u2011ons, or mandatory packages after financing discussions begin. This closes a major loophole that disproportionately affected lower\u2011income buyers, who were often targeted by these lots and hit with unexpected charges that dramatically increased the final cost of the vehicle.<\/p>\n\n\n\n

Why the FTC Is Changing the Rules Now<\/strong><\/h2>\n\n\n\n

Consumer complaints have surged, with buyers reporting bait\u2011and\u2011switch pricing at record levels. Hidden fees became a major frustration point, especially as dealer add\u2011ons grew more aggressive and often mandatory. Doc fees ballooned in many states, with some exceeding $900, allowing dealers to artificially lower the advertised price while raising the final cost.<\/p>\n\n\n\n

Comparison shopping became nearly impossible because each dealership hid different fees. The FTC determined that the system was fundamentally misleading and needed reform.<\/p>\n\n\n\n

What the New Rule Fixes<\/strong><\/h2>\n\n\n\n

Teaser pricing is no longer allowed. Dealers must advertise the real price before tax, not a stripped\u2011down base price.<\/p>\n\n\n\n

Hidden fees must be disclosed upfront rather than appearing only in final paperwork.<\/p>\n\n\n\n

Mandatory add\u2011ons must be included in the advertised price, eliminating the practice of forcing buyers to purchase packages they never asked for.<\/p>\n\n\n\n

The overall buying experience becomes clearer, more predictable, and easier to compare across dealerships.<\/p>\n\n\n\n

Real\u2011World Example of How Pricing Changes Under the New Rule<\/strong><\/h2>\n\n\n\n

Old advertised price: $28,995 <\/p>\n\n\n\n

Hidden Fees: Doc fee: $699 Dealer add\u2011ons: $1,495 Prep fee: $395 Mandatory package: $995<\/em><\/p>\n\n\n\n

True price: $32,579 before sales tax<\/p>\n\n\n\n

Under the new FTC rule, the dealership must advertise $32,579 now \u2014 not $28,995<\/strong><\/p>\n\n\n\n

Fines for Non\u2011Compliance<\/strong><\/h2>\n\n\n\n

Dealerships that fail to follow the new pricing\u2011transparency rule face significant penalties. The FTC can issue civil fines for each violation, and the amounts can escalate quickly because every misleading advertisement, listing, or sales interaction counts as a separate offense.<\/p>\n\n\n\n

Dealers may also face additional consequences such as required refunds to affected customers, mandatory corrective advertising, and investigations that can expand into other dealership practices.<\/p>\n\n\n\n

The FTC has made it clear that non\u2011compliance will not be treated lightly. The agency views deceptive pricing as a direct consumer\u2011harm issue, and enforcement actions are expected to increase once the rule is fully implemented.<\/p>\n\n\n\n

How to Report Dealerships That Violate the New Rule<\/strong><\/h2>\n\n\n\n

Buyers who encounter misleading pricing or discover hidden fees that were not included in the advertised price can report the dealership directly to the FTC.<\/p>\n\n\n\n

Reports can be submitted through the FTC\u2019s public complaint portal, where consumers can document the dealership name, the advertised price, the actual price presented, and any supporting screenshots or paperwork.<\/p>\n\n\n\n

Consumers may also report violations to their state\u2019s attorney general, who can pursue additional penalties under state consumer\u2011protection laws.<\/p>\n\n\n\n

The FTC encourages buyers to report violations because consistent reporting helps identify patterns of abuse and supports enforcement actions against dealerships that refuse to comply.<\/p>\n\n\n\n

What Buyers Should Expect Going Forward<\/strong><\/h2>\n\n\n\n

Pricing will be more honest and easier to understand. Surprises at the dealership will decrease. Comparison shopping becomes simpler because all required fees must be included upfront. Online listings will reflect the real cost before tax. Budgeting becomes more predictable for buyers.<\/p>\n\n\n\n

The FTC\u2019s new rule is one of the biggest consumer\u2011protection changes in the auto industry in decades \u2014 and it directly benefits everyday buyers.<\/p>\n\n\n\n

Related Reading<\/strong><\/h2>\n\n\n\n

New Cars With the Best Factory Warranty Coverage<\/strong> <\/a><\/p>\n\n\n\n

New Cars Still Cheap in US Compared to Rest of the World<\/a><\/strong> <\/p>\n\n\n\n

The Cooling Appeal of Real Estate Careers in a Shifting Market<\/a><\/strong> <\/p>\n\n\n\n

New AI Developed Metal Alloy for Cars<\/a><\/strong><\/p>\n\n\n\n

click here for more salary information<\/a><\/strong><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

By – real salaries for all professions For decades, car dealerships have advertised artificially low teaser prices that excluded doc fees, dealer add\u2011ons, prep fees, and mandatory packages.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4203],"tags":[4582,4583],"class_list":["post-3677","post","type-post","status-publish","format-standard","hentry","category-finance","tag-dealer-add-ons","tag-dealer-doc-fees"],"_links":{"self":[{"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/posts\/3677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/comments?post=3677"}],"version-history":[{"count":4,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/posts\/3677\/revisions"}],"predecessor-version":[{"id":3687,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/posts\/3677\/revisions\/3687"}],"wp:attachment":[{"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/media?parent=3677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/categories?post=3677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/tags?post=3677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}