Louisiana and Massachusetts have each recently issued guidance addressing motor vehicle dealer advertising practices, particularly around the disclosure of fees in advertised vehicle prices. Both actions follow the Federal Trade Commission’s March 13, 2026 “Notorious 97” warning letters to auto dealership groups nationwide (discussed here) and reflect ongoing efforts at the state and federal level to ensure that advertised prices accurately reflect the total cost consumers will be required to pay.

Louisiana: LMVC Aligns State Rules with FTC Enforcement

On May 26, 2026, the Louisiana Motor Vehicle Commission (LMVC) issued Bulletin #B-2026-003, directed to all licensed dealers and manufacturers in the state. The bulletin follows the FTC’s March 13, 2026, press release and warning letters, and indicates that Louisiana intends to bring its existing advertising rules into alignment with current federal standards.

The LMVC acknowledged that its advertising rules under La. Admin. Code tit. 46, §§ V-719 and 733 require amendment to be consistent with current FTC enforcement positions. Formal rulemaking under the Louisiana Administrative Procedure Act is forthcoming. In the meantime, the bulletin advises dealers of the following requirements:

  • All-in pricing. The total advertised price must include all mandatory dealer fees. This expressly covers state-regulated fees such as documentary, notary, and convenience fees under La. R.S. 6:969.18. If a dealer charges these fees, they must be included in the advertised price.
  • Government fees must be “excluded,” not “plussed.” When required government fees (such as taxes, license, and title) are not included in the advertised price, the advertisement must use the word “exclude” rather than “plus.”
  • The most prominent price must be one every consumer can pay. The headline price in any advertisement must be a price that 100% of consumers can walk in and write a check for.
  • “Click for price” language. The LMVC specifically identified the following phrases as potentially problematic: “Click for your best price,” “Call for today’s price,” “Get Today’s Price,” “Call for Pricing,” and similar language. The FTC has indicated that failure to post a total sales price online can constitute a deceptive practice.
  • Mandatory dealer add-ons must be included. Pre-installed accessories that cannot be removed without damage or substantial effort (such as theft deterrent systems, window tint, or nitrogen in tires) may be considered mandatory, and their cost must be reflected in the advertised price.
  • Use of “free” and “complimentary.” The FTC considers use of these terms in connection with a negotiable sales transaction to be deceptive.

The LMVC also noted that the FTC has indicated it will not accept conflicting state law as a defense in enforcement actions, as § 5 of the FTC Act and the Commission’s interpretation of it preempt inconsistent state rules.

Massachusetts: The AG Issues Advisory on Doc Fees

The Massachusetts Office of the Attorney General (AGO) recently issued an Advisory on Motor Vehicle Documentary Preparation Fees, placing all dealers in the Commonwealth on notice of their obligations regarding the disclosure of documentary preparation fees in advertised vehicle prices.

Under 940 Code Mass. Regs. 5.02(3), any fee a dealership necessarily charges, including documentation preparation fees, must be included in the advertised price of the vehicle. The AGO clarified that separately disclosing the doc fee elsewhere in the advertisement, even if prominently displayed, does not satisfy this requirement. The fee must be incorporated into the advertised price itself.

The advisory also addresses the Monroney label context. Even when displaying the federally mandated manufacturer’s suggested retail price sticker, dealers must affix an adjacent label showing the total price, inclusive of all necessary fees, if that price differs from the Monroney label amount.

The AGO noted that noncompliance may expose dealers to liability under both the motor vehicle advertising regulations and the Attorney General’s Unfair and Deceptive Fees regulations.

Federal Context

These state actions follow the FTC’s March 13, 2026, announcement that it had sent warning letters to 97 auto dealership groups. The letters cited several examples of pricing practices the FTC identified as illegal, including advertising a price that does not reflect all required fees, advertising a price based on rebates or discounts not available to all consumers, conditioning an advertised price on the use of dealer financing, and advertising unavailable or non-existent vehicles.

The FTC’s auto dealer pricing initiative is part of a broader agency effort to promote price transparency across consumer markets, including rental housing, ticketing, hotels, and grocery and delivery services.

What Dealers Should Do Now

Dealers should review their current advertising across all channels (websites, social media, radio, television, and mailers) to assess compliance with applicable state and federal requirements. Key considerations include:

  1. Confirming that all advertised prices include every mandatory dealer fee and every pre-installed add-on accessory.
  2. Replacing “plus taxes and fees” language with the appropriate “excludes taxes, license, and title” disclosure.
  3. Reviewing “call for price,” “click for best price,” and similar placeholder phrases in digital listings.
  4. Reviewing use of “free” and “complimentary” in promotional language tied to vehicle sales.