March 26, 2026
Over the past week, I’ve heard from many Virginia dealers with questions about the FTC’s warning that the agency is actively enforcing its rules requiring dealers to advertise total price on vehicles.
Some ask: “Do we really have to follow this guidance, and change our advertising? Won’t NADA work with the FTC to amend the rules?”
My answer? No. The FTC has spoken. There is no rule that NADA can work to amend here. The CARS Rule was riddled with flaws, which NADA helped shoot down. But this isn't the CARS Rule...this is the FTC acting on their existing powers.
So go ahead, don’t follow our guidance. How you run your business is your choice.
But if you choose to ignore this warning, you face significant risk to every aspect of your dealership, your finances — even your mental health. If you believe “NADA will handle it,” we would ask you: “What do you expect them to handle, exactly? The idea that it is unfair for an advertised price to include all fees so consumers can comparison shop?”
Numerous dealers nationwide have already had actions taken against them by the FTC that have cost them millions of dollars and unending professional and personal distractions. And 97 more were put on notice this month that the FTC may be turning to them next.
This isn’t a question of whether the FTC is enforcing rules. They already are, and the watchdogs — consumers, attorneys, competitors — are watching your every move.
Dealers are among several industries with an FTC target on their backs over added fees – think concert tickets, short-term rentals, food delivery. The Commission expects price transparency, and for dealers that means presenting a true drive-out price on your advertisements excluding only government-required fees.
This is not a new concept, but enforcement has arrived. Dealers should not wait for perfect clarity or for others in their market to move first. Compliance needs to happen now.
At the same time, it’s important to recognize the leadership of the National Automobile Dealers Association. Last year, NADA and the Texas Automobile Dealers Association led the way as champions of the industry when they successfully challenged the FTC's CARS Rule in Court, which kept it from being enacted. NADA remains deeply engaged with the FTC as the Commission takes renewed focus on this enforcement position. NADA is working on behalf of dealers nationwide through a complex set of issues that include manufacturer programs and third-party offerings.
Their ongoing dialogue, including an upcoming April 6 webinar with the FTC, is critical to providing additional guidance where questions remain. I encourage you to attend this online webinar (register here), where we will hear directly from a senior FTC attorney who will offer more information about the warning letters and the agency's views of dealer advertising. This is a unique opportunity to hear directly from a regulator to assist your compliance efforts going forward.
In the meantime, the path forward is clear: Be transparent, be proactive, and get compliant. Not doing so comes at your own risk.
— Don Hall, President and CEO, Virginia Automobile Dealers Association
With the FTC's March 13 announcement that advertised vehicle prices must reflect the total price — a major change that will impact Virginia dealers — VADA has developed resources you can use starting today to ensure compliance and avoid costly penalties that could impact your bottom line and reputation.
To comply with the FTC Act, the advertised price of a vehicle should be the total price the consumer is expected to pay, which must include all fees and charges (i.e., processing fee and freight) and only excludes governmental fees (i.e, tags, title and taxes).