FTC Warning Letters: Updates and Guidance for Ohio Dealers

On March 13, 2026, the Federal Trade Commission (FTC) sent letters to 97 dealerships throughout the country warning them of potential violations of federal advertising laws. The letters were not determinations that the recipients violated the law. Instead, the letters are a clear warning from the FTC that the prices dealerships advertise must be the total price including all mandatory fees, except for government charges, consumers will be required to pay. Specifically, the warning letter advised recipients:

“I encourage you to review your practices, including by making sure the prices you advertise include all required fees and charges aside from required government charges, to ensure you are complying with applicable laws. This would include, at a minimum, evaluating your advertised prices and actual prices and confirming they match.” (italics and emphasis added)

The letters indicate that dealers may be violating Section 5 of the FTC Act which prohibits unfair and deceptive acts and practices by advertising prices that are not transparent or truthful. The FTC cited examples of illegal advertising including:

• advertising a price that does not reflect all required fees,
• advertising a price that reflects rebates or discounts not available to all consumers,
• advertising a price that fails to take into account the amount of an additional required down payment,
• conditioning the advertised price on consumers using dealer financing,
• requiring consumers to buy additional items not reflected in the advertised price, and
• advertising unavailable or non-existent vehicles.

NADA met with the FTC to discuss this matter further. The main takeaways from the meeting were:

• The most prominent price in all ads must be the all-in price (everything except for governmental fees).  This must be the “out-the-door” price at which any consumer can purchase the vehicle; 
• The FTC is not regulating the amount of doc fees, but doc fees still must be included in the all-in price;
• Other information can be in the advertisement provided it is truthful, less prominent, properly and clearly qualified, and does not confuse ordinary consumers;
• The FTC stressed that its announcement furthers the Administration’s imperative of transparent pricing in the marketplace; and
• Expect FTC enforcement actions to follow.

NADA has identified several issues that the FTC must address.  The FTC will seek to do so in an NADA-hosted webinar with the FTC that is scheduled for Monday April 6 at 1 pm EDT.  We encourage all our members to register for the webinar HERE.

While Ohio law, like many states, allows doc fees and other similar fees to be excluded from an advertised price, it appears that the FTC believes doing so violates federal law.  Both NADA and OADA will continue to seek clarification regarding the interplay of state and federal law.  However, at this time, due to the FTC’s current position, dealers should strongly consider adding the amount of their doc fee and any title service fee they charge to their advertised price.  Managing this issue any other way should only be done after consulting with legal counsel.  

We will continue to update dealers as we receive more information. If you have additional questions or concerns, please contact OADA Vice President of Legal Affairs, Sara Bruce at (614) 923-2243 or sbruce@oada.com, or OADA Staff Counsel, Matthew Smallwood at (614) 923-2232 or msmallwood@oada.com.