Late on Tuesday, the Federal Trade Commission published frequently asked questions on price transparency to help dealerships and rest of the automobile industry comply with the FTC Act.

 

While the guidance delves into specific topics such as how to handle document fees, rebates and discounts, perhaps the penultimate question and subsequent response might be most critical for dealership principals and managers.

 

Question No. 13 was: How long do dealers have to come into compliance?

 

The FTC replied, “Price transparency is not a new requirement, and it has tremendous benefits for consumers and for competition. The FTC Act and Section 5’s requirements have been in effect for decades. If anyone is misleading consumers about price, they are risking FTC action. The FTC will continue to monitor the marketplace to protect both consumers and competition.”