NPDA white paper urges OEM pricing overhaul to meet FTC rules, protect dealers

National Powersports Dealers Association is calling on manufacturers to rethink how powersports units are priced, warning that current practices are putting dealers at risk under new federal pricing transparency rules.

In a white paper released April 23, the association said a growing disconnect between OEM pricing structures and Federal Trade Commission “all-in” pricing requirements is creating compliance challenges for dealers — particularly when it comes to freight and setup fees.

The FTC now requires that the most prominently advertised price include all mandatory charges. However, most OEMs continue to publish MSRPs that exclude freight and setup, leaving dealers to reconcile the difference at the retail level.

“Dealers did not create this problem, but they are the ones being held accountable,” says NPDA director Michael Maledon. “The current system rewards opacity and punishes transparency.”

Dealers caught in the middle

According to the NPDA, the mismatch forces dealers into a difficult position: either advertise a higher, all-in price that may appear uncompetitive, or risk running afoul of FTC guidelines by promoting a lower MSRP that doesn’t reflect the true out-the-door cost.

The group said the issue creates not only regulatory exposure, but also reputational challenges as consumers increasingly expect upfront pricing.

Automotive model cited

The white paper cites the automotive industry as a working example, in which destination charges are already built into MSRP and displayed on the Monroney label. That approach, NPDA argues, provides consistency between advertised and in-store pricing.

Two key recommendations

To address the issue, NPDA is urging manufacturers to take two steps:

• Integrate freight into MSRP: So advertised pricing matches what consumers will actually pay before taxes and optional add-ons.
• Reimburse dealers for setup: Establish a formal model to cover assembly, inspection and delivery preparation costs that are currently handled at the dealership level.

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

Push for alignment

The association said aligning OEM pricing with FTC requirements would reduce confusion, improve compliance and create a more transparent buying experience for customers.

The full white paper is available through NPDA’s website.