FTC Cracks Down on Advertised Prices and Hidden Dealer Fees. What RVers Should Know

RV shoppers are used to seeing one price in an advertisement, and another after freight, preparation, documentation, and other dealer fees are added.

New guidance from the Federal Trade Commission puts dealers on notice that mandatory dealer fees generally belong in the advertised price.

The FTC issued new automobile pricing transparency guidance on September 15 explaining how it interprets existing federal law. According to the agency, an advertised vehicle price must be the price any consumer can actually pay, excluding charges that a government requires the consumer to pay directly.

That means a dealer-required fee cannot simply be added after the shopper arrives.

The FTC gives the example of a vehicle advertised for $40,000 with a mandatory $85 documentation fee. The advertised price should be $40,085.

RV dealers are paying attention

The guidance is written for the automobile industry, but the RV industry has been following the FTC’s position closely.

The RV Dealers Association published the new guidance for its dealer members, highlighting the FTC’s position that the most prominent advertised price must include dealer-required fees. RVDA also noted that government-authorized fees that are not actually required by the government must still be included.

Concerns over RV pricing did not start this week. Earlier this year, the FTC sent warning letters to 97 auto dealership groups over potentially deceptive pricing practices.

By July, RV dealers and industry compliance specialists were already discussing how the FTC’s position could affect RV sales. RVDA President Phil Ingrassia told RVBusiness that destination charges should be included in an advertised price rather than added afterward.

Discounts and add-ons are covered too

Mandatory fees are only part of the FTC’s guidance.

Dealers can advertise rebates and discounts, but they can’t present a lower price available only to certain customers as though everyone qualifies. For example, a first-responder discount can be shown, but the price available to any customer must be displayed more prominently.

The same applies to dealer-financing incentives. A dealer can offer a lower price for using its financing, but the price available without that condition must remain the most prominent advertised price.

The FTC also addresses optional products. Dealers may sell accessories, protection packages and other add-ons, but they cannot tell buyers an optional product is required when it is not, or claim an installed option cannot be removed if that is not true.

What this means for RV buyers

The FTC describes the new document as guidance explaining existing law, not a new regulation. The FAQs also represent FTC staff views and are not binding on the Commission or the public.

The agency’s examples focus primarily on automobiles, and the document does not separately explain how every provision applies to motorhomes, travel trailers and fifth wheels.

Still, RVDA’s response makes clear that RV dealers are taking the guidance seriously.

For shoppers, the main thing to watch is the advertised price. If a dealership requires a fee to complete the purchase, the FTC’s position is that the dealer generally should not advertise a lower price and reveal that mandatory charge later.

Buyers who encounter potentially deceptive pricing can report it through the FTC’s ReportFraud system. The agency recommends keeping copies of advertisements, contracts, and other documentation related to the disputed price.