- Dealers were called out for leaving document fees out of listed prices.
- Massachusetts Attorney General Andrea Joy Campbell issued a warning.
- Dealerships were told to stop using shift pricing practices at once.
Car dealerships across Massachusetts have been put on notice by local Attorney General Andrea Joy Campbell for questionable sales practices in which the full sale prices of cars are sometimes not accurately advertised.
In response to several buyer complaints that dealerships across the state have been failing to include mandatory document preparation fees in advertised prices, the Attorney General has issued an advisory and reminded them of their legal obligations. These ‘doc fees’ can cost hundreds of dollars, and buyers often feel pressured to complete a purchase at a dealership, even though the vehicle is advertised at a lower price.
Read: The FTC Finally Named All 97 Dealers It Warned Over ‘Deceptive’ Pricing
“Dealerships in the Commonwealth have been failing to include these fees in the advertised price of their vehicles, in violation of Massachusetts law, which has undermined consumers’ ability to comparison shop and make informed decisions in the market,” Campbell wrote.
In the advisory note, the Attorney General says that a dealership simply mentioning the existence or amount of a document preparation fee in its advertisement isn’t sufficient, “even if it is prominently disclosed.” Instead, dealerships must include any doc fee in the vehicle’s advertised price.
What Could Happen Next?
Dealerships have been instructed to halt the practice immediately. Those who continue may face enforcement action under the AGO’s motor vehicle regulations and/or its rules on unfair and deceptive fees. Locals who suspect a dealer has broken these laws can file a consumer complaint online or by calling the Consumer Protection hotline.
This is, of course, a nationwide issue and not just one that occurs in Massachusetts. This year, the Federal Trade Commission has begun taking steps to banish shady pricing practices across the industry and has even begun asking dealers to dob in their competitors. It’s too early to know whether any of the FTC’s efforts will actually impact the industry or convince dealer groups to clean up their operations, but doing something certainly seems better than doing nothing.
