FTC Price Rules for Car Listing Videos: A Dealer Checklist

In 2026 the Federal Trade Commission told car dealers, more than once, that the price in an ad has to be the price a buyer actually pays. A listing video, whether it is a 30-second reel, a Short or a clip on your own website, is an advertisement, and the FTC says its pricing rules reach every format a buyer might see.

This article walks through what the FTC actually wrote, what it didn't, and a checklist for the videos you post. We read the primary documents, which are linked at the end, rather than summaries of them.

What changed in 2026

• March 13: warning letters. The FTC announced it had sent warning letters to 97 auto dealership groups. The letters say an advertised price must include all mandatory fees. They list practices the FTC considers illegal, including leaving required fees out of the price, relying on rebates or discounts that not every buyer can get, making the price depend on dealer financing, and advertising vehicles that are unavailable or don't exist. (FTC press release)
• September 15: price transparency FAQs. FTC staff published 14 questions and answers on how the FTC Act applies to car pricing. (press release, FAQ document)
• October 1: California's CARS Act took effect. We cover it below. (California DMV notice)
• October 8: proposed Greenway settlement. The FTC announced a proposed settlement with Greenway Auto Group. It alleges the group charged buyers more than $3,350 over the advertised price, on average, in over 92% of transactions. Those are the FTC's allegations, and the order is not final until a court approves it. (FTC press release)

What the FTC's FAQs say

The FAQs run seven pages. These are the points that matter for a listing video.

• The advertised price is the actual price (FAQ 2). The FTC describes it as "the actual price any consumer can walk in and pay." Only government-required charges, such as taxes, can be left out. Fees the dealer requires, including the full document fee, go in the price (FAQ 2 and 6).
• Every format counts (FAQ 3). The FAQs list dealer and third-party websites, social media, print ads, roadside signs, and even phone calls and texts, and say each one is subject to the FTC Act.
• The actual price is the most prominent amount (FAQ 4 and 5). That includes individual-vehicle pages. MSRP and discounts can appear only if the actual price stays the most prominent amount and the terms are clear, and prominence is "not limited to font size."
• No price built on a deal only some buyers get (FAQ 9). A dealer can't advertise a price based on a discount or rebate that only a subset of buyers qualify for, even though buyers may negotiate.
• Say when the car isn't on the lot (FAQ 10). Ads for cars in transit or offsite must make that clear. The FAQs also say that advertising a car that is no longer available, just to draw buyers in, is deceptive.
• Photos should show the car being sold (FAQ 11). A representative photo is acceptable only if it is truly representative of the vehicle, in make, model, condition and other material characteristics, and a reasonable buyer would understand it as illustrative. For used cars, the FAQs say it is reasonable for buyers to expect the photo to show the exact car.
• Whoever controls the ad shares responsibility (FAQ 12). That covers dealers, third-party advertisers and manufacturers. Dealers should give accurate prices to anyone producing ads for them and take the steps within their control to make sure the price is shown correctly.

Underneath all of this is the FTC's general test: an ad's overall impression must not mislead a reasonable consumer, judged on the facts of that ad.

What the FAQs don't say

The FAQs don't mention video, short-form video, captions, voiceover, on-screen text or AI-generated content. They don't say how large a price must appear on screen or how long it must stay there. Anything more specific than "every format counts" is interpretation.

Some trade coverage goes further. A July 2026 article from the National Independent Automobile Dealers Association (NIADA), for example, passes along compliance experts' advice to keep qualifying terms on screen long enough to read, not to rely on a caption alone, and to treat each platform post as its own ad. It doesn't point to a video-specific FTC action. The advice is sensible, but it comes from the experts the article quotes, not from the FTC's text. We label our own suggestions the same way below.

A pre-posting checklist for listing videos

Eight checks. The note after each one says whether it comes from the FTC's text or is our suggestion.

1. If the video shows or says a price, make it the actual price. That is the total a buyer has to pay, leaving out only government-required charges such as taxes. Dealer fees go in. If you aren't sure what the actual price is, don't put a number in the video until you are. Source: FTC FAQ 2 and 6.
2. Don't advertise a price that depends on a discount only some buyers get. No headline number that relies on a rebate, a loyalty or military discount, or dealer financing that not every buyer qualifies for. Source: FTC FAQ 9.
3. Make the actual price the most prominent number. In a video, we'd read that as: the figure a viewer sees and hears first and longest should be the actual price, not an MSRP, a "was" price or a monthly payment. Our reading of FTC FAQ 4 and 5.
4. Show the exact car. Use photos and footage of the unit you are selling, not stock images or another car of the same model. Source: FTC FAQ 11.
5. Watch AI-generated motion before you post it. If an AI tool animated your photos, watch the whole clip, not just the first few seconds. AI video can add motion or alter small details that aren't in your photos, so compare it with the real car. If anything looks different, regenerate it or don't post it. The FAQs list condition among the material characteristics, so avoid any version that looks better than the car does. Our suggestion; the FAQs don't address AI.
6. Take the video down when the car sells, and label cars that aren't on the lot. Ads for in-transit or offsite cars must say so. Keeping a list of live videos by stock number makes it easier to pull them from every platform. Source: FTC FAQ 10; the list is our suggestion.
7. Put what a viewer needs to understand the price in the video itself. Don't rely on the caption underneath. Treat each platform's post as its own ad. Advice from compliance experts quoted by NIADA, not FTC text.
8. Keep a copy of every video you post. Save the file with the date, platform, stock number and the price shown. California now requires dealers to keep compliance documents, advertisements included, for two years. Elsewhere we haven't verified a requirement, but it is the first thing you'll want if a buyer or regulator asks what you advertised. Source: California DMV notice OLIN 2026-10; elsewhere it is our suggestion.

A state example: California

States add their own rules. California's CARS Act (SB 766) took effect on October 1, 2026. According to the state DMV's notice to dealers, it requires dealers to clearly and conspicuously disclose the total price in any advertisement that references a specific vehicle or financing terms, prohibits misrepresenting pricing and availability, and requires compliance records, advertisements included, to be kept for two years. (California DMV notice OLIN 2026-10)

How the law defines "total price" matters, and we haven't summarized it here. Read the DMV notice and the statute, or ask your attorney. If you sell in another state, check with your state dealer licensing agency, attorney general or dealer association. We have only reviewed California for this article.

Who is responsible when a tool makes the video?

FAQ 12 says everyone who controls an ad shares responsibility for the price being right, and tells dealers to give accurate pricing to anyone producing ads for them. In practice, a video tool only knows what you type in. The check is yours.

Where MotorCast fits

MotorCast AI builds a listing video by animating the photos you upload and adding a voiceover, music and optional captions. The vehicle specs come from the VIN, using NHTSA's public vehicle database.

The asking price is a required field. The voiceover script states the price you enter, phrased as "asking price," and the script is checked against that figure: a sentence that states a different price is removed. You can read and edit the script before any voice is generated, and if you edit it, re-read the price line yourself.

What MotorCast doesn't do: it doesn't know your fees, whether the price you typed is the actual price, or your state's rules, and it can't promise that an animated video matches your car in every frame. Watch each video before you post it. Videos are stored in your account for 90 days, so download the ones you post (see check 8).

Frequently asked questions

Does the FTC have a rule specifically for car dealer video ads?

Not in the documents we reviewed. The September 2026 FAQs apply the FTC Act's pricing requirements to every format, including social media, but they don't single out video. The general test applies: an ad's overall impression must not mislead a reasonable consumer.

Are the FTC's FAQs legally binding?

No. The FAQs say they represent the views of FTC staff and are not binding on the public or the Commission. They show how staff read the FTC Act, which the FTC enforces, and the FTC says it continues to sue dealers that advertise one price and charge more.

Can I use a stock photo or a photo of a similar car?

The FAQs allow a representative photo only if it is truly representative of the vehicle being sold, condition included, and a reasonable buyer would understand it as illustrative. For used cars they say buyers can reasonably expect the photo to show the exact car, so use photos of the actual unit.

Do I have to keep copies of the videos I post?

In California, the DMV says dealers must keep compliance records, including advertisements, for two years. We haven't verified requirements for other states, but keeping a dated copy of each video is a sensible habit everywhere.

Sources

• FTC Warns 97 Auto Dealership Groups About Deceptive Pricing (FTC press release, March 13, 2026)
• FTC Publishes Price Transparency FAQs for Auto Dealers (FTC press release, September 15, 2026)
• Automobile Industry FAQs on price transparency (FTC staff, PDF)
• FTC Secures Settlement with Auto Dealership Group in Price Transparency Win for Consumers (FTC press release, October 8, 2026; proposed order, allegations only)
• Implementation of CARS Act (SB 766), OLIN 2026-10 (California DMV, September 2026)
• FTC Scrutiny Expands to TikTok and Video Ads as Dealer Pricing Rules Tighten (NIADA, July 21, 2026; the video-specific advice in it is the authors' and their experts', not the FTC's)

We read these documents on November 11, 2026. This article is general information, not legal advice.

Related Reading

• What Makes a Great Car Listing Video?
• How to Make a Car Listing Video (Step-by-Step)
• Aging Inventory Marketing: A Re-Merchandising Playbook
• AI Voiceover for Car Ads: What It Is and Why It Works