Some states are warning auto dealers to be clear with customers on car prices after federal regulators admonished stores this spring about “deceptive” practices.

Massachusetts’ attorney general issued an advisory to dealerships operating in the state, reminding them of their legal obligation to advertise cars’ full prices, including fees.

Andrea Joy Campbell indicated in a press release about the advisory that her office had gotten complaints from automotive retail consumers that mandatory documentation fees weren’t included in advertised prices. Instead, the fees were disclosed separately or added at transaction’s end.

She cautioned dealers that exclusion of mandatory costs from advertised prices should “cease immediately” and that any violations could bring enforcement action. Her office also encouraged consumers to report any violations of vehicle and/or unfair and deceptive fee laws.

“A vehicle is one of the most significant purchases many residents will ever make, and they deserve clear, upfront pricing, not hidden fees that are only added at the end of a transaction,” Campbell said.“This advisory will help dealerships comply with our laws so that consumers can make informed decisions about where to spend their money.”   

All fees, taxes and other mandatory costs should be included in advertised prices so consumers can make the most informed choice about vehicle purchases, Campbell said.

“It is not enough for a dealership to separately list the existence or amount of a doc fee elsewhere in an advertisement, even if it is prominently disclosed.Doc fees can vary widely between dealerships and often add several hundreds of dollars to the final purchase price.” 

In March the Federal Trade Commission warned 97 U.S. auto dealers over what it termed deceptive pricing and said enforcement actions were pending in the case of three auto groups.

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