Massachusetts Attorney General Cracks Down on Dealers for Hiding Mandatory Fees in Fine Print

Massachusetts Attorney General Andrea Joy Campbell has issued a formal warning to car dealerships across the state, demanding an immediate end to the practice of hiding mandatory document preparation fees in the fine print of advertised prices. The move follows multiple consumer complaints alleging that dealerships were excluding these fees—often amounting to hundreds of dollars—from the upfront prices listed for vehicles, thereby violating Massachusetts law.

Under state regulations, dealerships are required to include all mandatory fees, including document preparation fees, in the advertised price of a vehicle. The Attorney General’s office clarified that even if a dealership mentions the existence or amount of such fees in its advertisements, it is insufficient unless the fees are fully incorporated into the listed price. The advisory explicitly states that dealerships must halt the practice immediately or face potential enforcement action under motor vehicle regulations or rules prohibiting unfair and deceptive fees.

The crackdown highlights broader concerns about transparency in car pricing, a nationwide issue that has drawn attention from federal regulators. Earlier this year, the Federal Trade Commission (FTC) launched initiatives to address deceptive pricing practices across the auto retail industry, including efforts to encourage dealers to report competitors engaging in similar tactics. While the long-term impact of these federal actions remains uncertain, the Massachusetts AGO’s warning signals a growing regulatory push to hold dealerships accountable for misleading pricing tactics.

Consumers in Massachusetts who suspect a dealership is violating these transparency laws are encouraged to file a complaint with the Attorney General’s Office through its online portal or by calling the Consumer Protection hotline.