Connecticut Assembly introduces bill regulating car dealer advertising prices

Senate Bill 774, introduced in the Connecticut General Assembly on April 1, 2025, aims to enhance transparency in the automotive sales industry by regulating how car dealers advertise vehicle prices. The bill seeks to ensure that the advertised price of a motor vehicle includes all relevant costs, such as federal taxes, delivery fees, dealer preparation fees, and any other associated charges. However, it mandates that state or local taxes and registration fees be clearly excluded from the advertised price, with specific requirements for font size and clarity.

Key provisions of the bill include a requirement for dealers to disclose the total price in advertisements while also stating, in bold type, the exclusions for taxes and fees. Additionally, the bill stipulates that the amount of any dealer conveyance or processing fee must be prominently displayed next to the relevant phrase in advertisements.

The introduction of Senate Bill 774 has sparked discussions among lawmakers, consumer advocacy groups, and the automotive industry. Proponents argue that the bill will protect consumers from hidden fees and misleading pricing practices, fostering a more honest marketplace. Critics, however, express concerns that the additional regulations may impose burdens on car dealers, potentially leading to increased vehicle prices or reduced inventory.

The implications of this legislation could be significant for both consumers and dealers. By promoting clearer pricing, the bill aims to empower consumers to make informed purchasing decisions, potentially increasing competition among dealers. However, the automotive industry may need to adapt to these new advertising standards, which could affect their marketing strategies and operational costs.

As the bill progresses through the legislative process, stakeholders are closely monitoring its developments. If passed, Senate Bill 774 is set to take effect on October 1, 2025, marking a notable shift in how vehicle pricing is communicated to consumers in Connecticut.