FTC and Colorado Advertising Enforcement: What Auto Dealers Need to Know in 2026
June 2, 2026
Recent warning letters issued by the Federal Trade Commission (FTC) have renewed attention on automotive advertising practices nationwide. While the letters do not establish new rules, they provide valuable insight into the advertising issues currently drawing scrutiny from regulators. For Colorado dealers, the takeaway is straightforward: advertising must be accurate, transparent, and compliant with both federal and state requirements, and when those standards differ, dealers should follow the stricter rule.
Pricing Transparency Remains the FTC’s Primary FocusAt the center of the FTC’s recent enforcement efforts is vehicle pricing. The agency continues to emphasize that the advertised “Total Price” should be the most prominent price presented to consumers and should include all mandatory charges. Dealers should not provide advertised prices that exclude required fees (including dealer handling), rely on conditional rebates, require dealer financing to obtain the advertised price, or fail to disclose significant terms and conditions. Regulators have also expressed concern over advertisements for unavailable vehicles and pricing that does not accurately reflect what consumers can actually purchase.
That said, please note that the advertising and pricing concerns raised by the FTC are all already governed by existing Colorado advertising regulations. Accordingly, there is really not anything new in the FTC requirements for Colorado dealers, except that we now know of the new emphasis that the FTC will make and that they are on the lookout for violations.
Disclosures Must Be Clear and ConspicuousThe FTC is equally focused on disclosures. Under Section 5 of the FTC Act, advertising must not create a misleading overall impression. Disclosures should be clear, conspicuous, and located near the claim they qualify. Fine print, hidden terms, hyperlinks to conditions, or disclosures that contradict the primary message of an advertisement may create compliance issues. In evaluating advertisements, regulators often consider the overall “net impression” conveyed to consumers rather than relying solely on the technical accuracy of individual statements.
Colorado Dealers Face These and Additional Advertising RequirementsColorado dealers face an additional layer of regulation through the Auto Industry Division’s advertising rules. Colorado requires advertised prices to include dealer handling (D&H) charges and other mandatory costs due at delivery, with only limited exceptions such as taxes, government fees and finance charges. The regulations also prohibit misleading discounts, deceptive rebate presentations, bait advertising, inaccurate vehicle descriptions, and advertisements that create false impressions about financing availability or vehicle condition. There are 19 separate dealer specific advertising rules that all dealers operating in Colorado must be aware of and comply with. See 1 CCR 205-1, 44-20-121(3)(i).
Financing and Lease Advertising Require Special AttentionDealers advertising financing or lease offers should also pay close attention to the Truth in Lending Act and its implementing regulations, specifically Regulation M and Regulation Z. Certain financing and lease terms trigger additional disclosure requirements, and many recent enforcement actions have focused on advertisements that prominently feature attractive payment amounts while burying important qualifying information in fine print.
Dealers Are Responsible for Third-Party AdvertisingDealerships should remember that responsibility for compliance does not end with their marketing vendors. Whether advertisements appear on dealership websites, social media platforms, third-party listing services, or vendor-managed campaigns, regulators generally hold the dealer accountable for the content. Regular reviews of advertising materials and vendor practices remain an important part of any compliance program.
Key Takeaways for Dealers
- Advertise the true total price, including all required fees and D&H.
- Clearly disclose any conditions, limitations, or rebate qualifications.
- Ensure disclosures are prominent, readable, and located near the claims they qualify.
- Review financing and lease advertisements carefully for required Truth in Lending disclosures.
- Monitor third-party vendors and online advertising platforms for compliance.
- When federal and Colorado requirements differ, follow the stricter standard.
The FTC’s recent warning letters serve as a reminder that transparent advertising remains a top enforcement priority. A proactive review of advertising practices can help dealers reduce risk and avoid costly regulatory scrutiny.
If you need assistance navigating advertising compliance for your dealership, contact:Randy Earnest | (303) 894-4423 | rearnest@fwlaw.com