FTC Price Transparency FAQs for Auto Dealers: Advertising Compliance and Insurance Implications

On September 15, 2026, the Federal Trade Commission (FTC) published detailed staff guidance on price transparency in vehicle advertising, reaffirming that a vehicle’s advertised price must reflect the amount any consumer can pay upon purchase, excluding only government-mandated charges. The guidance follows warning letters the FTC sent to 97 auto dealer groups nationwide in March 2026, and it provides the clearest guidance on how the agency plans to enforce existing law.

For dealers who have assumed this kind of scrutiny is directed elsewhere, the timing and specificity of the guidance merits close attention.

What led to the FTC’s September 2026 Price Transparency FAQs

The FTC's renewed focus on auto pricing didn't start with the September FAQs. In March 2026, the agency sent formal warning letters to dealer groups across the country, notifying them, their advertised prices may not match what consumers pay. Those letters were followed by public webinars walking through examples of prohibited pricing, and by an open invitation for dealers, and their competitors, to report violations directly to the agency.

The new FAQs build on that groundwork. They restate, in detail, a single governing principle: any fee a dealer requires a customer to pay must be included in the advertised price. The only exception is for government-mandated charges, such as tax, title, and registration fees.

Dealer advertising practices likely to draw FTC scrutiny

Brown & Brown Dealer Services reviewed the FTC's guidance and identified the practices most likely to draw scrutiny:

• Advertising a price that excludes required fees. Documentation fees, e-filing charges, and prep fees all belong in the advertised price if every customer is required to pay them.
• Advertising rebates or discounts that are not available to every customer. A lower "our price" that only applies with dealer financing isn't the advertised price.
• Leaving the required down payment out of the ad. If reaching the advertised number depends on an unstated down payment, the ad falls short.
• Conditioning the advertised price on dealer financing. Financing incentives can be part of a one-on-one negotiation. They cannot be built into a publicly advertised price.
• Requiring add-ons the customer never approved of, including freight, prep, or finance and insurance products.
• Advertising vehicles that aren't available or aren't located where the customer is shopping.

Financial exposure from FTC enforcement actions against dealers

Two recent enforcement actions illustrate the scale of exposure. An automotive group with multiple locations faces refunds and penalties projected at $75M after allegations of advertising prices that were not honored, undisclosed financing requirements, and unapproved add-on fees. Its general manager was also named personally and assessed a multimillion-dollar civil penalty. Similarly, a separate case against a Connecticut dealership resulted in a $4M settlement for deceptive fee practices.

A common misconception among dealers is that commercial insurance will respond to these claims. But it generally does not. General liability policies cover things like libel and intellectual property disputes. However, consumer fraud allegations intentional misconduct, fraud, and knowing violations of the law are excluded from coverage. The primary remedy the FTC pursues, restitution and disgorgement of profits, is also generally not treated as an insurable loss.

Steps auto dealers can take to review advertising compliance

Dealers should treat this guidance as a prompt to review, not a distant regulatory update:

• Audit current advertising against the fee standard. Compare advertised prices to actual transaction prices across your website, print ads, and desking sheets.
• Check payment advertising for Reg Z compliance. Any ad referencing a down payment, number of payments, payment amount, or APR triggers additional required disclosures, and those disclosures need to sit clearly next to the claim, not behind a linked disclaimer.
• Confirm disclaimers were updated everywhere a fee or policy changed. A disclaimer can qualify a truthful claim, but it cannot cure a false one.
• Talk with your insurance advisor about how your program responds to advertising and pricing allegations, and what it excludes.
• Involve legal counsel, particularly where state attorney general requirements layer on top of federal rules.

Next steps and how Brown & Brown Dealer Services can help

The FTC's September 2026 guidance provides specific enforcement expectations for the auto industry. With millions in penalties already assessed and a direct channel for competitors to report suspected violations, compliance is a measurable business risk.

By conducting a comprehensive audit of your advertising practices, closing identified policy gaps, and consulting with your legal and insurance advisors, you can reduce your exposure. Please contact your Brown & Brown Dealer Services team with any questions or to learn more about our dealer services solutions.

Disclaimer: Brown & Brown, Inc. and all its affiliates do not provide legal, regulatory, or tax guidance and/or advice. If legal advice, counsel, or representation is needed, the services of a legal professional should be sought. The information in this blog post is intended to provide a general overview of the topics contained herein. Brown & Brown, Inc. and all its affiliates make no representation or warranty as to the accuracy or completeness of this document and undertake no obligation to update or revise it based on new information or future changes.