If you sell motorcycles, ATVs, side-by-sides, snowmobiles, boats, RVs, or cars, this is your problem.

The buyer looking at your inventory online have already done two hours of research before they click on your listing. They know what freight charges are. They know what setup fees look like. And they are fed up with arriving at a dealership to find a price that does not match what they budgeted for.

These are people who saved up for a purchase they care about. This is an emotional, high-dollar decision. They built a budget around the number they saw and when that number changes at the last minute, even if the change is technically disclosed somewhere in the fine print... it feels like a bait-and-switch. Because it kind of is.

This is exactly why the FTC got involved.

What the FTC Actually Said and What Happened Next

In June 2022, the Federal Trade Commission proposed what became known as the CARS Rule- Combating Auto Retail Scams. The rule sought to "protect consumers and honest dealers by making the car-buying process more clear and competitive," and the original proposed definition of "Motor Vehicle" was broad enough to include recreational boats, marine equipment, motorcycles, motor homes, and RV trailers.

The FTC said it put forth the regulation because it had taken more than 50 enforcement actions related to automobile transactions in the last 10 years, while also receiving more than 100,000 consumer complaints annually related to the car-buying experience.

That is a pattern.

Industry associations pushed back hard. The Marine Retailers Association of the Americas, the RV Dealers Association, the National Powersports Dealer Association, a number of state-based marine trade associations, and the U.S. Small Business Administration's Office of Advocacy all collaborated to voice opposition to the FTC's initial rule and ultimately made the case for an exemption.

Their argument was reasonable: the rule was written for car dealers, and boat, RV, and powersports sales have different dynamics. Things like required batteries, rigging, engine installation, and other pre-delivery work make blanket fee disclosure rules hard to apply.

It worked. RV, boat, and powersports dealers were ultimately exempted from the CARS Rule, which placed new regulations on automobile dealers during the sales process.

Then, in January 2025, the rule got hit from another direction. The Fifth Circuit Court of Appeals vacated the FTC's CARS Rule before it could take effect, finding that the FTC failed to follow its own regulations in promulgating the rule of sparing automobile dealers nationwide from additional compliance burdens regarding advertising, pricing transparency, and financing disclosures.

However... the CARS Rule is not dead. 

The Rule Is Gone. The Problem Is Not.

Here is what a lot of dealers missed: the FTC's enforcement muscle was never entirely tied to the CARS Rule. The agency has separate, long-standing authority under Section 5 of the FTC Act to go after deceptive advertising and pricing practices.

The FTC issued warnings to 97 auto groups around the country, reminding them their advertised prices must be the total price (inclusive of all mandatory fees) that consumers will have to pay. "The Trump-Vance FTC is committed to preventing auto dealers from misleading consumers with low advertised prices and then adding on mandatory fees at the end of the purchasing process," said Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection.

And on the powersports side, the NPDA made clear where things currently stand. All states now require all-in advertised pricing. There are no exceptions.

Recent FTC actions have fundamentally altered the risk profile for vehicle advertising by mandating that the most prominent advertised price be the "all-in" price, a mandate that must include all mandatory fees such as freight, handling, and preparation, excluding only government fees.

So even though the formal CARS Rule was thrown out, the underlying expectation is still there: advertise the real price or face the consequences.

The Impossible Position Manufacturers Put You In

It genuinely gets unfair because dealers have been absorbing this problem quietly for too long.

OEMs publish an MSRP that excludes freight and setup costs, yet they still charge dealers for freight and require technical assembly before a unit is road-ready. This leaves dealers in an impossible position between advertising a legal all-in price that appears uncompetitively high compared to OEM websites, or advertising the MSRP price that invites regulatory consequences.

In other words, the manufacturer's own website shows one price. Your competitor down the street shows the same price. You show the real, compliant, all-in price, and suddenly you look like the expensive option, even though you are the only one being honest.

If dealers advertise the true all-in price, they look more expensive than a competitor who shows a lower price with fees buried for later. Dealers who continue hiding fees the old way are putting themselves at greater risk of facing the same FTC scrutiny now aimed at car dealers.

You are damned if you comply and exposed if you don't.

NPDA director Michael Maledon put it directly: "Dealers did not create this problem, but they are the ones being held accountable. The current system rewards opacity and punishes transparency. It's time for manufacturers to modernize their pricing structures and align with today's consumer protection standards."

What the NPDA Is Asking Manufacturers to Do

In April 2026, the National Powersports Dealers Association released a white paper laying out the problem and calling on OEMs to fix it.

The NPDA's white paper argued that a growing disconnect between OEM pricing structures and FTC "all-in" pricing requirements is creating compliance challenges for dealers, particularly when it comes to freight and setup fees.

The NPDA's ask was straightforward:

1. Fold freight into MSRP. OEMs should include freight or destination charges in the MSRP so consumers see the same price online and on the dealer lot, just like the automotive industry already does with the destination charge printed on the Monroney label.

2. Reimburse dealers for setup. OEMs should adopt a formal reimbursement model for required setup, assembly, inspection, and delivery preparation.

"It is time for manufacturers to be part of the solution," said Maledon. "Dealers want to compete on a level playing field and build trust with consumers."

This is not a radical ask. Car manufacturers have been doing this for decades. The sticker in the window of a new car already includes the destination charge. Buyers know what they are getting before they walk in. The deal still gets made and everyone still makes money.

The powersports and RV space just hasn't gotten there yet and dealers are the ones caught in the middle while the industry figures it out.

The Consumer Side: Why Buyers Are Tuned Out and Checked Out

Buyers are doing more research before they ever contact a dealer. They shop online for weeks. They build budgets and compare.

Destination fees in the auto space alone jumped from an average of around $839 in 2011 to $1,244 in 2020, with some consumers seeing destination fees as high as $2,095 in 2024. Car buyers collectively paid more than $26 billion in destination charges last year. Automakers aren't required to include the destination fee in the advertised price, which adds to the stress of the car-buying process.

Now imagine a buyer who budgeted based on an MSRP they saw on your website or on the manufacturer's page. They come in ready to buy. Then the freight charge hits. Then the setup fee. Then the doc fee. Suddenly they are $1,500 over budget and their excitement has curdled into suspicion.

Hidden fees can turn what seems like a great deal into a financial nightmare. And buyers know it. They talk about it online, leave reviews about it, and tell their friends.

Consumers who are shopping longer, comparing harder, and demanding better experiences represent both the greatest opportunity and the greatest risk to dealers. They are also the buyers most likely to slip quietly out of the funnel.

That last part is the one that should keep you up at night. You do not always know when a buyer leaves. They do not always argue. They just go.

The Pros and Cons of All-In Pricing for Your Dealership

The Case For All-In Pricing

It builds trust before the buyer walks in. When the price on your website matches the price on the deal sheet, buyers are not shocked. They are ready to buy. That emotional readiness speeds up the whole sales process.

It is the direction this is heading regardless. Forward-thinking dealerships are embracing transparent pricing strategies as a competitive advantage. In a market where consumers are more informed than ever, trust is a key differentiator. Transparent pricing builds credibility and increases customer loyalty. Getting ahead of it now is smarter than being dragged into it by enforcement.

It removes the legal risk. Advertising a price that excludes mandatory fees is an FTC violation waiting to happen. In the case of a conflict between FTC guidance and state laws on fees, FTC guidelines control. And it is not just the FTC, attorneys can bring actions, though they would have to prove actual damages. The risk is real, even if the CARS Rule is gone.

Compliance becomes simpler. Right now your sales team is managing the awkward moment when fees get added in F&I. That moment costs you deals. A fully disclosed price at the top of the funnel removes that moment entirely.

The Case Against and Why the Concerns Are Real

Your advertised price looks higher than your competitors'. This is the sharpest pain point. If you show an all-in price and the OEM's website shows the base MSRP, you look expensive. That is not your fault, but it is your problem.

Not all fees are flat. In marine applications, required batteries, rigging, or engine installation may not be included in a standard all-in price if they vary by customer configuration or vessel setup. If they vary, the dealer must include multiple ads. For RV and marine dealers especially, this creates real operational complexity.

Margins may need to be restructured. To maintain profitability while complying with all-in pricing expectations, dealers need to adjust pricing to maintain margins. That is not a small thing. It requires a pricing strategy conversation, not just a website update.

Industry-wide change takes time. The NPDA is pushing OEMs to move, but manufacturers are large organizations with slow-moving pricing structures. Until freight is baked into MSRP at the manufacturer level, dealers face the competitive disadvantage of being the transparent option in a market full of opaque competitors.

What You Can Do Right Now Before the Industry Catches Up

You do not have to wait for OEMs to fix this. There are things you can do today to reduce your risk, build trust, and convert more of the leads already coming to your website.

Audit your online pricing right now. Look at every unit listing on your website. Does the advertised price include freight and setup? If it does not, you are exposed. The NPDA's own Q&A makes clear: if a dealer is advertising a price that excludes mandatory fees, the correct approach is to advertise the all-inclusive out-the-door price.

Add explicit disclosures where full all-in pricing is not yet possible. If your fees vary by configuration (which is common in marine) add language that explains what is and is not included. Do not let buyers discover fees for the first time in the F&I office.

Train your team on the "why." The conversation about price transparency should not feel defensive when a buyer brings it up. It should feel like a value proposition. "We show you the real price upfront because we respect your time and your budget" is a sentence that closes deals.

Use your website to do the heavy lifting. This is where we come in.

How Transparent Pricing Feeds Your Online Lead Engine

At Digital Power Solutions, we build TradeCycle and PayCycle, website tools that help dealerships capture leads by giving buyers real numbers on their trades and real payment estimates before they ever step foot in your store.

Here is why that matters in a pricing-transparency world: when a buyer already knows their trade value and their estimated payment, the conversation shifts. It is no longer about sticker shock. It is about the deal. They are already mentally in.

A buyer who walks in knowing their trade is worth $8,000 and their payment lands around $280 per month is not getting surprised by fees they did not see coming. They came in ready.

When your advertised price is honest and your website tools give buyers real numbers they can trust, you are not just compliant, you are converting at a higher rate. You are turning browsers into buyers before they ever call you.

Successful dealers are not the ones hiding fees until the last minute. They are the ones making the path to purchase feel safe enough to start.

The Bottom Line for Powersports, RV, and Marine Dealers

The FTC may have lost the CARS Rule battle in court, but the war on deceptive pricing is not over. Enforcement continues under existing law. State attorneys general are active. Consumer attorneys are watching.

And beyond the legal exposure, there is a simpler business case: dealerships that adapt early will not only stay compliant, they will gain a competitive edge. The FTC's push for price transparency is not just about regulation. It is about reshaping trust between dealers and consumers.

Your buyers are smarter and more skeptical than ever. They are shopping your competitors online at the same time they are on your site. They are reading reviews about dealerships that surprise them with fees. They are telling their friends.

The dealers who embrace real pricing now (all-in, upfront, no drama) are the ones who get the phone call, the form submission, the trade-in lead.

"Dealers want to compete on a level playing field and build trust with consumers. That starts with a pricing system that is transparent, fair and compliant."

That is not just a line from a white paper. That is your competitive advantage, if you want it.

Digital Power Solutions provides TradeCycle (value-your-trade) and PayCycle (browse-by-payment) website tools to powersports, RV, and marine dealerships. Our tools help dealers capture more leads by giving buyers real numbers upfront, driving more ready-to-buy traffic into your showroom.