FTC Sends Warning Letter About Advertising to 97 Dealers

March 2026 | Pennsylvania Automotive Association

On March 13, the FTC sent warning letters to 97 dealers, which outlined several advertising issues (see the next PAA News Bulletin). This week, NADA met with FTC staff for clarification and to coordinate an upcoming webinar on April 6 (link to register below). PAA encourages all dealers to participate in the webinar.

The main take aways from NADA’s meeting were:

• The most prominent price in all ads must be the all-in price (everything except for government fees). This must be the out-the-door price at which any consumer can purchase the vehicle; 
• Documentary Fees must be included in the “all-in” price – regardless of conflicts with a state law like Pennsylvania’s (the FTC is not regulating the amount of the doc fee);
• Other information can be in the ad provided it is truthful, less prominent, properly and clearly qualified, and does not confuse ordinary consumers;
• The FTC stressed that its announcement furthers the Trump Administration’s imperative of transparent pricing in the marketplace; and
• Expect FTC enforcement actions (which will be nonpublic) to follow.

What does this mean for the Documentary Fee in Pennsylvania?

Documentary fees are not government fees – they are permissible but not required by state law. While it was previously permitted to exclude the documentary fee from the advertised price under Pennsylvania’s Attorney General Automotive Industry Trade Practices Regulations, the Federal FTC Act supersedes Pennsylvania law. The Doc Fee will now need to be included in the advertised price.