FTC Pricing & Advertising Compliance Questions for Powersports Dealers

The NPDA and our dealers appreciate Leonard Bellavia, Esq., Founding Partner of Bellavia Cohen P.C., a/k/a DealerLaw.com” for taking the time to respond to all of these questions (see highlighted texts) from our Partner Webinar Series on May 12, 2026.

Back to FTC Pricing Initiative

1. Enforcement Timeline, Scope, and Legal Authority

Effective Date and Enforcement

• When does FTC enforcement officially begin for these pricing and advertising expectations?

  • Assume immediately

• Should dealers expect any grace period or reasonable enforcement flexibility while updating websites, advertising, and sales processes?

  • No. It is likely that aggressive enforcement will await release of FTC FAQs, but there is no guarantee. 

Applicability to Powersports

• Do these standards apply equally to powersports dealers and automotive dealers?

  • Yes

• Are there any powersports-specific carve-outs, exemptions, or differences in enforcement expectations?

  • No

Federal vs. State Law

• Does FTC guidance override state laws regarding itemized dealer fees?

  • Yes, but only if federal and state guidelines conflict.

  • Example: If a state allows separate documentary or service fees, must those fees still be included in the advertised price under FTC expectations?

    • Yes

• How should dealers reconcile FTC guidance with state-specific rules governing taxes, registration, doc fees, and disclosures?

  • In the case of a conflict, the FTC guidelines control.

• Which states currently do not require all-in advertised pricing?

  • It’s moot. All states now require it.

Enforcement and Liability

• Is enforcement limited to the FTC and government agencies, or can consumer attorneys and private law firms pursue claims using FTC standards?

  • Attorneys can bring actions, however they would have to prove actual damages as the fines are available only to the FTC.

2. Advertised Price, All-In Pricing, and Fee Disclosure

Required Inclusions in Advertised Price

• Must advertised prices include:

  • Freight

    • Yes

  • Setup/preparation

    • Yes

  • Assembly

    • Yes

  • Reconditioning fees

    • Yes

  • Documentary/service fees

    • Yes, except for sales tax, title and registration fees

  • Any mandatory dealer charges

    • Yes

• Are taxes, title, registration, DMV, license, and other government fees the only charges permitted to remain excluded?

  • Yes

Documentary and Reconditioning Fees

• Must documentary fees be included within the advertised price rather than listed separately?

  • Yes, but they can be referenced as included.

• If a dealer charges a mandatory reconditioning fee on a pre-owned unit, must that fee be built into the advertised price?

  • Yes

Disclosure Requirements

• Is advertising language such as:

  • “$12,999 plus freight, prep, doc fee, taxes, and tag” compliant if the actual fee amounts are not disclosed?

    • No, price must include all such charges except taxes and DMV fees.

No-Price Advertising

• If no price is advertised online or externally, may freight, setup, doc fees, or other charges still be added during the sales process?

  • Yes, except in states where price must be disclosed in an advertisement for a vehicle or unit.

• Does avoiding advertised pricing reduce or eliminate all-in pricing obligations?

  • Same as above, but whenever consumer requests price, even if verbally in showroom or over phone, out the door price must be provided except for tax and registration.

In-State vs. Out-of-State Transactions

• Can dealers advertise pricing based on their own state requirements even if out-of-state buyers may incur different taxes, registration fees, or compliance costs?

  • Yes, unless your ads are targeted specifically to out of state buyers.

• Are dealers protected if they accurately disclose all required fees applicable within their operating state?

  • Yes

3. “Call for Price” and Website Pricing Practices

• Is “Call for Price” compliant under current FTC expectations?

  • Yes, but disclosures during call are critical. Assume being recorded.

• Is “Call for Availability” treated differently than “Call for Price”?

  • Yes, if not available then don’t advertise it.

• Does avoiding online price displays reduce compliance exposure related to all-in pricing rules?

  • May conflict with OEM requirements to include price. Across the board lack of pricing will attract FTC audits.

• Are there risks associated with displaying estimated pricing without complete disclosures immediately visible?

  • Yes, estimated pricing is prohibited.

4. Monthly Payment Advertising and Finance Disclosures

Payment Advertising

• What disclosures are required when advertising estimated monthly payments?

  • Example: “Payments as low as $290/month”

    • Reg M and Reg Z still apply. Full disclosure needed. “As low as” violates the rules.

Disclosure Timing and Visibility

• Must all financing assumptions be immediately visible within the advertisement itself, including:

  • Down payment

    • Yes, as Reg Z still applies

  • Interest rate

  • Loan term

  • Credit qualification requirements

• Does requiring consumers to click for disclosures create compliance risk?

  • Yes, all pricing must be prominent.

Finance Qualification and Conditional Offers

• If payment estimates are generated through providers such as Octane, what disclosures are required when not all customers will qualify?

  • If all customers do not qualify then the ad is not compliant.

• Does advertising:

  • “0% financing for 60 months” create compliance concerns if qualification depends on:

    • Yes, price not available to all customers

  • Specific lenders

  • Dealer financing

  • Tier-one credit approval

Dealer Financing Restrictions

• Does FTC guidance prohibiting conditioning price on dealer-arranged financing affect:

  • Finance promotions

  • Payment calculators

  • Captive finance offers

  • OEM finance incentives

    • Question unclear. Cannot condition price on dealer-arranged financing, so bullet points are moot.

5. Inventory Advertising, Sold Units, and Availability

Advertising Availability

• What qualifies as advertising an unavailable or non-existent vehicle?

  • If the vehicle is not on the premises, unless in transit within a few days

• How do these rules apply to automated inventory management systems?

  • Applies to all participants.

Sold and Pending Units

• May dealers leave sold units online if clearly marked:

  • “Sold”

  • “Pending”

  • “Deposit Taken”

• How quickly should sold inventory be removed from websites?

• Is clearly labeling the unit sufficient, or should it be removed entirely?

  • Removed entirely. “Pending” is deceptive. “Deposit taken” is misleading.

In-Transit and On-Order Units

• Is there a legal distinction between:

  • Maybe, but it’s irrelevant as only in-transit may be advertised and only if expected within a few days.

  • “In Transit”

  • “On Order”

  • “Coming Soon”

• Can dealers advertise units not physically in stock or without confirmed delivery dates?

  • No

6. OEM Showroom Pages, Catalogs, and Model Displays

• Can dealer websites display all OEM models, even if those units are not physically in inventory?

• Are digital showroom or catalog pages permissible if separated from actual in-stock inventory?

  • Yes

• Does listing OEM MSRP without local dealer pricing create compliance concerns?

• Would a brochure-style or informational model page without inventory claims fit within FTC expectations?

  • Okay, as long as “manufacturer stock photos” are used along with “not in our inventory”.

7. OEM Pricing Structure, MAP Policies, and Dealer Margin Concerns

MSRP and Freight

• Why are OEMs generally not required to include freight or setup within MSRP?

  • Freight is required in auto industry. Because MSRP is not a price ceiling.

• How can dealers push OEMs toward more transparent all-in MSRP structures?

  • By sending demands that they do so pointing out potential FTC violations.

Freight Variability

• How can OEMs realistically standardize freight inclusion when costs vary by:

  • Geography

  • Dealer location

  • Shipping method

  • Unit type

    • By employing same methodology as in automotive industry and having a fix cost based on averaging.

Maintaining Margin While Staying Compliant

• What are dealers expected to do operationally before OEMs adjust MSRP structures?

  • Advertise the all-inclusive out the door price. OEMs do not retail units.

• How can dealers maintain profitability while complying with all-in pricing expectations?

  • Adjust pricing to maintain margins.

MAP Compliance

• How should dealers reconcile OEM MAP pricing requirements with FTC all-in pricing expectations?

  • Write demand letters to OEMs.

• If MAP requires advertising a specific price, how should mandatory fees be handled?

  • Add “plus tax and DMV fees” immediately below price.

“No Freight or Setup Fees” Advertising

• If freight is already embedded in MSRP through OEM invoicing, could advertising:

  • “No freight or setup fees ever” be considered deceptive because the customer still indirectly pays those costs?

    • No. Deceptive. Instead, say “freight and setup fees included in price”. Correct.

8. Advertising Claims, Promotions, and Visual Representation

Loss Leaders and VIN-Specific Pricing

• Can dealers advertise VIN-specific loss leader pricing if:

  • The advertised unit is genuinely available

  • Pricing disclosures are accurate

  • Expired ads are promptly removed

    • Yes

Pricing Claims

• Is advertising:

  • “Wholesale Pricing Every Day” legally defensible if the dealer sells above invoice or adds fees?

    • No

Photos and Accessory Representation

• If vehicle photos include accessories not included in the advertised price, could that be considered deceptive advertising?

  • Yes

• Should all displayed accessories either:

  • Be included in the advertised price, or

    • Yes

  • Be clearly disclosed as optional equipment?

    • Risky

Marine and Installation-Specific Concerns

• In marine applications, may required batteries, rigging, or engine installation be itemized separately if they vary by customer configuration or vessel setup?

  • NO. Price must be “all-in”. If varies, then include multiple ads.

9. California and State-Specific Compliance Concerns

• Do these same FTC expectations apply equally in California?

  • Yes

• How should dealers navigate conflicts between:

  • Federal FTC guidance

  • State advertising laws

  • State fee disclosure requirements

  • DMV regulations

  • State consumer protection statutes

    • If conflict between FTC and state or local laws, then FTC trumps.