What did the FTC actually say?
The FTC has stated clearly in their public letters, and has now reportedly followed up with NADA, reiterating the position that advertised vehicle prices must include all fees a consumer is required to pay, except government-imposed charges (taxes, title, registration, license). The FTC considers dealer-imposed documentary fees to be required fees that must be reflected in the advertised price. This means that the FTC has stated that to ensure you comply with federal advertising requirements, you must include all required fees, including doc fees, in the advertised price. Failure to do so will likely be considered a deceptive practice under Section 5 of the FTC Act.
Does state law override the FTC?
The open question is how does your state law on doc fees interact, if at all, with this federal requirement?
Federal and state consumer protection laws operate concurrently. However, many states have specific advertising statutes that address doc fee treatment, and in some cases, those statutes explicitly permit or even require practices that seem to differ from the FTC’s position. The FTC’s most recent guidance strongly suggests that the doc fee must be in the advertised price regardless of various state laws, but we are awaiting formal written guidance from the FTC on the question.
We understand that both NADA and a number of states are continuing to work with the FTC seeking clarity on this question. In the meantime, dealers should comply with both federal and state law, and until the FTC issues written guidance, where a genuine conflict exists, should consult legal counsel and their state dealer association for how to disclose doc fees.
Why do some states conflict with the FTC’s position?
The FTC has indicated that all required dealer-imposed fees must be in the advertised prices. However, several states have enacted laws that treat the doc fee as negotiable or optional — meaning it may not meet the definition of a “required fee” under those states’ frameworks. Other states explicitly allow the doc fee to be excluded from the price. For example:
- California law, including the CA CARS Act, explicitly permits auto dealers to exclude doc fees from the advertised price with the required statutory disclaimer.
- Connecticut law mandates that the conveyance fee be stated as excluded and negotiable. Including it in the price would conflict with the statute’s required disclosure format under Conn. Gen. Stat. § 14-62a(a).
As a result, despite the clarity of the FTC’s position, there are several open questions regarding the interplay between state and federal law in a minority of the states. See Exhibit A below for some further details among the states. This is an evolving area of law. We are working closely with state dealer associations and monitoring regulatory developments to ensure our guidance remains current.
EXHIBIT A – STATE DOC FEE ADVERTISING LAWS
State laws vary widely, but we have identified five broad categories based on current state law (important distinctions exist between states, but we have grouped into categories for ease of analysis):
For Dealers in States Among the First 3 Groups – Follow FTC Guidance and Include the Doc Fee in the Advertised Price
Group 1: Doc Fee Required in Price
States: AK, AR, CO, FL, GA, IA, IN, KS, KY, MA, ME, NE, NJ, NY, OK, PA, VT
Your state law requires the doc fee to be included in the advertised vehicle price. Only government charges (taxes, title, registration, license) may be excluded. State law and FTC guidance are aligned in these states.
What you should do: Include the doc fee in your advertised price. This is required by both your state law and FTC guidance.
Group 2: Ads Must Disclose Existence of Doc Fee
States: AZ, HI, NC, SC
Your state law requires that advertisements disclose the existence and/or amount of the doc fee, but does not specifically require the fee to be included in the advertised price.
What you should do: We recommend following FTC guidance and including the doc fee in your advertised price. In the absence of state-specific rules, federal guidance is the best available standard for compliance.
Group 3: No Specific State Requirement
States: AL, DC, DE, MT, ND, NH, RI, WV, WY
Your state does not have a specific statute or regulation addressing doc fee treatment in vehicle advertising. General consumer protection laws prohibiting deceptive practices apply.
What you should do: We recommend following FTC guidance and including the doc fee in your advertised price. In the absence of state-specific rules, federal guidance is the best available standard for compliance.
For Dealers in States Among the Following 2 Groups – Dealers Should Follow FTC Guidance, But Note That There Are Potentially Open Questions Under State Law
Group 4: Doc Fee Is Negotiable and May/Should Be Excluded From Advertised Price
States: CT, OR, TX, WA
Your state law treats the doc fee as a negotiable or optional charge and requires it to be disclosed separately from the advertised price. In these states, including the doc fee in the advertised price may actually conflict with state law.
- Connecticut: The dealer conveyance fee must be stated separately in at least 8-point bold type, and the ad must indicate the fee is negotiable. The statute uses mandatory language requiring the fee to be declared as “excluded from such advertised price.”
- Oregon: The doc fee is defined as negotiable under state law and may be excluded from the statutory definition of “offering price.”
- Washington: The doc fee is defined as optional and negotiable. Dealers must disclose in advertisements that the fee may be added to the sale price.
What you should do: These states present a potential conflict between state advertising statutes and the FTC’s position. We strongly recommend consulting with legal counsel and your state dealer association to determine the appropriate approach for your dealership. We are actively monitoring this area for further regulatory developments.
Group 5: Doc Fee Permitted to Be Excluded From Advertised Price
States: CA, ID, IL, LA, MD, MI, MN, MO, MS, NM, NV, OH, SD, TN, UT, VA, WI
Your state law explicitly permits the doc fee to be excluded from the advertised price, provided it is properly disclosed. Disclosure requirements vary by state but generally require the specific dollar amount to be stated clearly and conspicuously near the advertised price. Some states have specific font size and formatting requirements.
What you could do: You have two options:
- Include the doc fee in your advertised price. This satisfies both the FTC and your state law, and it is the safest path. No additional disclosure is needed.
- Exclude the doc fee and disclose it properly. This complies with your state law. However, be aware that the FTC may view this differently. If you choose this approach, ensure your disclosure meets your state’s specific requirements (dollar amount, font size, proximity to price) and consult with your state dealer association or legal counsel.
Option 1 is the safest and most conservative path, but we recognize that Option 2 is permitted under your state’s current advertising rules.
NOTE that several dealer associations from states in this group (including Virginia and others) recommend that dealers include the doc fee in the advertised price.
What if I’m still unsure?
- Check your state’s category above and consider the recommendations.
- Contact your state dealer association — they understand your state’s regulatory landscape and advocacy priorities.
- Consult legal counsel — particularly if you operate in a state like CA, OR, WA, or CT where state and federal guidance potentially conflict.
- Contact us — our compliance team is available to discuss.
This FAQ is provided for informational purposes only and does not constitute legal advice. Laws and regulations change frequently and this is an evolving issue. Dealers should consult with qualified legal counsel before making compliance decisions.