If you’ve been on LinkedIn lately, you already know: the FTC is cracking down on hidden fees and deceptive pricing in the motor vehicle industry — and recreational dealers are squarely in the crosshairs.
The rule is simple. If you’re advertising a unit — on your website, a third-party classified site, in an email, or in a newspaper ad — you must clearly disclose the MSRP, freight charges, and setup fees. Every time. No exceptions.
New Pricing Rules for Powersports — and Beyond
The FTC now requires that any prominently advertised price include all mandatory charges. Here’s what that means in plain terms:
- Hidden Fees Prohibited: Dealers can no longer advertise a low MSRP and then add unexpected setup or freight fees when the customer arrives at the store. What’s in the ad must reflect what’s on the deal.
- Out-the-Door Transparency: The advertised price must closely reflect the customer’s final out-the-door cost. Only variable items like state sales tax and registration fees are excluded.
- Industry Pushback: The National Powersports Dealers Association (NPDA) is pressing manufacturers to roll freight and destination charges directly into MSRP — which would make compliance simpler for dealerships across the board.
And while this enforcement wave started in powersports, don’t expect it to stop there. Marine, RV, golf cars, trailers — if it’s recreational and it’s sold with an advertised price, this rule is almost certainly coming your way too.
The Days of Bait and Switch Are Over
For too long, customers would see a price online, walk into a dealership excited, and leave frustrated — because the out-the-door number was hundreds or thousands of dollars higher than the advertised one. Freight buried in the fine print. Setup fees added at the desk. It eroded trust and made every negotiation adversarial before it even started.
The FTC has started issuing fines. This isn’t a warning shot — it’s enforcement. The silver lining? Dealers who price honestly upfront will have fewer skeptical customers and more deals that close on goodwill rather than attrition.
If You’re Running Lightspeed, You’re Already Set Up
Here’s where it gets straightforward. Lightspeed DMS already has every field you need built directly into the unit record. You don’t need a workaround or a custom build — just fill in the fields that are already there.
Right there in the unit record, you can enter:
- MSRP — Manufacturer’s Suggested Retail Price
- Parts Prep — Parts used during setup and inspection
- Labor Prep — Tech time to prep the unit for delivery
- Freight Amount — Destination and delivery charges
And here’s the part that makes this even easier: most dealers are already pushing their inventory data to their website provider through the Lightspeed API — and all of these fields are included in that feed. That means compliant pricing flows to your website automatically, without any manual updating or double entry.
The Bottom Line
Get ahead of this. Price accurately, disclose everything, and you’ll have nothing to worry about. Try to skirt the system and you’ll be fined — and you’ll keep sending frustrated customers out the door.
This rule is here to stay. The dealers who adapt quickly will not only avoid penalties — they’ll build the kind of pricing trust that turns a first-time buyer into a repeat customer. That’s a competitive advantage worth having.
Jeremy Johnson
I'm a seasoned veteran in the powersport, marine, and RV industries with over 25 years of experience. I've spent a significant amount of that time in the digital and website space, and I absolutely love it. I recently celebrated my three-year anniversary at Lightspeed, where I get to work with OEMs and dealers and help them succeed in the digital world. When I'm not at work, I enjoy traveling with my family, watching my kids' sporting events, and exploring the beautiful outdoors of Northern Minnesota through hunting and fishing. I'm incredibly passionate about what I do, and I love sharing that passion with others. Whether it's working with my team at Lightspeed or spending time with my family, I'm always up for an adventure.
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