Massachusetts auto dealerships warned over hidden fees
Massachusetts Attorney General Andrea Joy Campbell has drawn attention to the unfair practices of local car dealerships. It turned out that dealers often do not list the full price of vehicles in advertisements, hiding mandatory documentation fees.
The essence of the problem and the authorities’ response
Numerous consumer complaints have shown that car dealerships across the state are not including the mandatory document preparation fee (so-called “doc fees”) in the advertised price. These fees can amount to hundreds of dollars, and buyers often feel pressured to complete the deal at the dealership, even though the car was advertised at a lower price.
“Dealerships in the Commonwealth were not including these fees in the advertised price of their vehicles, which violates Massachusetts law and undermines consumers’ ability to compare offers and make informed decisions in the market,” Campbell stated.
Advertising requirements and next steps
In her clarification, the Attorney General emphasized that simply mentioning the existence or amount of a documentation fee in an advertisement is not sufficient, “even if prominently displayed.” Instead, dealers are required to include any “doc fees” directly in the advertised price of the vehicle.
What could happen next?
Car dealerships have been instructed to immediately cease this practice. Those who continue to violate the rules may face enforcement action from the Attorney General’s Office (AGO) under motor vehicle regulations and/or laws against unfair and deceptive fees. Local residents who suspect a dealer of violating the law can file a complaint online or call the consumer protection hotline.
This problem, of course, is not limited to Massachusetts and has a nationwide nature. This year, the Federal Trade Commission (FTC) began taking steps to eradicate dubious pricing practices across the industry and even started calling on dealers to report violations by competitors. It is too early to say whether the FTC’s efforts will impact the industry or convince dealer groups to clean up their act, but doing something is certainly better than doing nothing.
It is worth noting that similar practices of hiding the real cost of cars are common not only in the USA. In Ukraine, there are also cases where car dealers advertise one price but add various “mandatory” payments during the execution of the deal, significantly increasing the final cost of the car. This creates additional risks for consumers who may not account for all expenses when choosing a vehicle. Therefore, the experience of Massachusetts can serve as a useful example for strengthening control over the protection of buyers’ rights in other countries as well.