top of page

Addendum Stickers and the CARS Rule

Conceptual image of a car dealership with a car, price tag, and addendum sticker, surrounded by compliance symbols like checklists and a magnifying glass, emphasizing regulatory changes and transparency under the FTC's CARS Rule.

The automotive industry is facing significant changes with the introduction of the FTC's CARS Rule. One area that could see a substantial impact is the use of addendum stickers. These stickers, traditionally used as a sales tactic, are set to undergo major transformations to comply with the new regulations. In this blog post, we explore how the CARS Rule affects addendum stickers and what dealerships would need to do to stay compliant.


The End of Traditional Addendum Stickers

Addendum stickers have long been a tool for dealerships to increase the front-end gross. However, under the new CARS Rule, this practice is likely to become obsolete. The rule mandates that any additional costs reflected on the addendum sticker must already be included in the advertised price.

Challenges with Addendum Stickers

Dealerships that continue to use addendum stickers as a means to increase prices will find it difficult to navigate these new regulations. For instance, if a dealership is selling a product like Pulse, which reduces rear-end collisions, the cost of this product must be included in the initial advertised price, not added later with an addendum sticker.

Compliant Usage

While the traditional use of addendum stickers may be fading, they can still be used in a legally compliant manner. Dealers can use addendum stickers to describe what is included in the vehicle without using them to increase the price above what was originally advertised.

Avoiding Illegal Practices

Dealerships must avoid illegal practices when using addendum stickers. For example, adding costs for unnecessary or non-existent services, like engraving the VIN on a catalytic converter in an electric vehicle, is both illegal and unethical. Such practices not only violate the CARS Rule but also damage the dealership's reputation and customer trust.

Adapting to the CARS Rule

If the CARS Rule survives litigation in its current form, dealerships will need to adapt their pricing strategies. This includes:

  1. Including All Costs in the Advertised Price: Ensure that any additional costs are part of the initial advertised price to avoid surprises for consumers.

  2. Using Addendum Stickers Transparently: Use these stickers to inform customers about what is included in the vehicle.

  3. Training Staff: Educate sales teams on the new regulations and the importance of compliance to avoid legal repercussions.

  4. Regular Audits: Conduct regular audits of advertising and pricing practices to ensure adherence to the CARS Rule.

Check out the full CARS Rule Keynote:

Stay Updated on Automotive Compliance

Subscribe to our blog for ongoing discussions on the CARS Rule, automotive compliance updates, and industry best practices. Follow us on LinkedIn to join the conversation and stay ahead of the curve. Let's navigate the world of automotive commerce together!

More About the CARS Rule:


Commenting has been turned off.
bottom of page