Late on Tuesday, the Federal Trade Commission published frequently asked questions on price transparency to help dealerships and rest of the automobile industry comply with the FTC Act.

While the guidance delves into specific topics such as how to handle document fees, rebates and discounts, perhaps the penultimate question and subsequent response might be most critical for dealership principals and managers.

Question No. 13 was: How long do dealers have to come into compliance?

The FTC replied, “Price transparency is not a new requirement, and it has tremendous benefits for consumers and for competition. The FTC Act and Section 5’s requirements have been in effect for decades. If anyone is misleading consumers about price, they are risking FTC action. The FTC will continue to monitor the marketplace to protect both consumers and competition.”

Earlier this year, the FTC sent letters to 97 dealer groups nationwide, encouraging stores to review their advertising practices and warning them that the prices they advertise must be the actual price — including all mandatory fees — that consumers will be required to pay.

This additional guidance reiterates that the advertised price of a vehicle must be the actual price that any consumer can walk in and pay to purchase the vehicle, excluding only charges that the government requires the consumer to pay.

The FAQs also provide guidance on such topics as:

—Why price transparency is an enforcement priority for the FTC

—What an advertised price should include

—How to account for price negotiations and optional items

—How to communicate price transparently across different media

—How to advertise accurately when vehicles are in transit

—How to assist the FTC’s enforcement efforts

“The FTC Act requires truthful and accurate pricing, which brings significant benefits for consumers and competition,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “Price transparency is a priority for the Trump-Vance FTC, and today’s guidance is intended to help dealers and others in the auto industry better understand how the law applies to their advertising.”

The entire guidance is available here.