TrueCar responds to FTC’s increased scrutiny with updated pricing standards
TrueCars' new price disclosures include an itemized list of mandatory dealer fees and add-ons. Image courtesy of TrueCar.
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The Federal Trade Commission’s recent warnings to dealers about how they advertise price have caught the attention of at least one car-shopping platform.
TrueCar has announced a series of product and policy updates designed to meet and exceed the FTC’s new truth in advertising standards, as well as state requirements for vehicle pricing transparency.
“TrueCar has always been built on price transparency,” founder and once-again CEO Scott Painter said. “It is our founding principle. The FTC’s current enforcement validates that approach. Our commitment to dealers and customers is that every vehicle listing on TrueCar complies with, and in many cases exceeds, what federal and state authorities require.
“Most recently, we updated our dealer agreement to ensure our platform remains a transparent and compliant marketplace.”
In a news release, TrueCar said it will implement platform-wide changes to make certain advertised vehicle prices shown to consumers are clear, consistent and compliant.
The updates include a new standard for vehicle pricing, with mandatory dealer fees and add-ons such as documentation and dealer prep fees incorporated directly into the advertised price. Current regulations require disclosure of those fees, but TrueCar said it will go further by explicitly identifying them within the total price shown to consumers.
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“Regulators are making it clear that ambiguous pricing is no longer acceptable,” Painter said. “We are moving early to establish a standard that is not only compliant but clear and consistent for consumers and dealers alike.”
The updates are a response to the latest enforcement priorities outlined by the FTC in warning letters sent in March to 97 dealer groups, including prohibitions on incomplete pricing, misleading discounts and unavailable inventor.
TrueCar said those letters signaled increased scrutiny of automotive advertising practices and a willingness to pursue enforcement actions against noncompliant pricing at both the federal and state levels.
The company noted state legislators are moving to codify similar standards around transparent, all-in pricing, citing California’s proposed CARS Act and Connecticut’s advertising rules mandating all fees and add-on costs to be included in the advertised price. TrueCar said additional states are expected to follow, “signaling a broader shift toward consistent, fully transparent pricing across the automotive retail market.”