ACM tells automotive industry to include inevitable costs in advertised prices

The Netherlands Authority for Consumers and Markets (ACM) has, for some time, been researching price indications in car advertisements. The outcome: ACM concludes that the car industry should be more clear about prices. ACM frowns upon the way the industry deals with car preparation fees (autorijklaarkosten); for example costs of transport from the factory to the dealer, cleaning and polishing, license plates, recycling and adminstration costs. ACM is of the opinion that these costs should be included in the advertised price. Stating car preparation fees separately is not sufficient.
 
Today (10 August 2016) the ACM announced a deadline for car preparation fees to be included in the advertised price. From 1 November 2016 the ACM will start to enforce, for example by imposing an order subject to a penalty for non-compliance or even imposing substantial fines. The ACM has announced that it will focus on car importers first.
 
ACM states in its press release:
           
The recommended price of cars in advertising will from now on contain all inevitable costs. Dealers are of course allowed to deviate from the total recommended price as mentioned in the advertisement. 
 
To me it does not seem so self-evident that dealers would be allowed to deviate from the price mentioned in the advertisement – at least not unreservedly. To deviate from this price without misleading the consumer I would think it necessary to explicitly state that the total price mentioned is a recommended price that individual dealers may deviate from.
 
Read the press release here.
Read the FAQ about car preparation fees here on the website of ACM here.
 
Questions? Feel free to contact me.
 
Daniël Haije – advertising lawyer

Image: www.acm.nl