Once again, advertising rules are front of mind for dealers — and once again, the FTC means business.
In March 2026, the FTC announced a major price transparency initiative and sent formal warning letters to 97 auto dealership groups nationwide. This initiative sent shock waves through the industry, as the FTC’s core principles appeared more restrictive than standard practices in some states.
A summary of these principles is listed in the following, along with GADA commentary. For Georgia dealers, there is a clear silver lining: These federal standards are largely consistent with what our state laws and Consumer Protection Division rules have required for years.
1. Advertised Prices Must Include All Required Dealer Fees
This is the “big one.” Advertised prices must include all mandatory dealer fees, such as doc fees and electronic filing (ETR) fees. The only fees that may be excluded from the headline figure are required government charges, including tax, title, registration and Lemon Law fees.
No more “price plus doc fee.” Instead, the advertised figure must be the full selling price. For example, advertising “$40,700 (inclusive of $700 dealer fee)” is permissible, while advertising “$40,000 plus $700 dealer fee” is not. While this has been the rule in Georgia for decades, it remains a top focus for regulators.
2. Discounts and Rebates Must Be Available to ALL Consumers
Advertised prices cannot factor in conditional rebates or discounts unless every prospective buyer actually qualifies for them. It is tempting to stack rebates — especially off MSRP — to show a dramatic price reduction. However, the FTC prohibits the inclusion of conditional savings (e.g., military bonuses, college grad offers, brand loyalty/conquest, or mandatory dealer financing) in the primary advertised price stack.
How should dealers advertise conditional offers? Feature them as separate, smaller disclosures outside the primary price stack, clearly outlining the specific eligibility requirements.
3. Advertised Prices Must Account for Mandatory Add-Ons
If an accessory, protection package, or dealer-installed item is mandatory or already on the vehicle, its cost must be baked into the advertised price. This has always been Georgia’s standard. State policy specifically dictates:
“Dealer-installed options or accessories that are required or are routinely installed, or options that are already installed on the advertised vehicle at the time the advertisement is published, must be included in the advertised price. Only those options installed at the request of the consumer following contact/negotiation with the dealership may be omitted from the advertisement.”
4. Dealers Cannot Advertise Unavailable Vehicles
The FTC is actively cracking down on advertising “phantom inventory” to drive foot traffic. As such, dealers should not list specific vehicles at specific prices if those vehicles are not physically in stock.
What about “in-transit” inventory? While formal federal guidance on in-transit units is still evolving, the safest approach is to clearly disclose that the vehicle is “in transit” and provide an accurate, verifiable estimated date of delivery.
The Good News
Compliance doesn’t have to mean manual headaches. GADA’s endorsed partner, ComplyAuto, offers an AI-powered tool called ComplyAuto Guardian designed specifically to scan your VDPs and digital advertising for federal and state compliance issues. As an exclusive benefit of membership, GADA members receive two free VDP audits per year, equipping your dealership with a powerful tool to streamline compliance.
