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Powersports Business • June 2026 • 13

BY JACOB BERRY CONTRIBUTOR

Powersports dealers may have less than a year before Federal Trade Commission enforcement activity intensifies across the industry, according to Gene Silas of Brightline Dealer Advisors.

Silas, speaking alongside Jeff Barron during a recent episode of the Dealership fiXit Podcast, warned dealers that the FTC’ s ongoing crackdown on advertised

The National Powersports Dealers Association is also urging manufacturers to overhaul unit pricing structures, warning that current practices are putting dealers at risk under the FTC’ s tightening pricing-transparency enforcement.

In a white paper released April 23, the association said a growing disconnect between OEM pricing and federal“ all-in” pricing expectations is creating compliance challenges for dealers, particularly around freight and setup fees.

Under the FTC’ s current enforcement approach, advertised prices must include all mandatory charges. However, most OEMs still publish MSRPs that exclude freight and setup costs, leaving dealers to bridge the gap at retail.

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

pricing practices in automotive retail is likely headed toward powersports next.

“ Powersports is 100 % next,” Silas emphasizes.“ I’ m giving it 12 months or less.”

EXISTING LAWS, STRONGER ENFORCEMENT

Silas emphasized that no new FTC laws have been created. Instead, regulators are increasing enforcement of existing advertising and pricing regulations. The primary issue centers on advertised prices that differ

significantly from the actual out-the-door amount consumers must pay once freight, setup, PDI, assembly, or additional dealer fees are added.

“ If I, as a consumer, come to your dealership, federal fees, tax fees and stuff aside, I have got to be able to buy that vehicle for what you have it listed at,” Silas shares.

Barron noted that 97 automotive dealerships have already faced FTC action under the agency’ s current enforcement posture, with penalties reaching $ 54,000 per violation.

According to the NPDA, dealers are effectively forced into two difficult choices: advertise a higher all-in price that appears less competitive online, or promote a lower MSRP that may not reflect the true customer purchase price.

The association pointed to the automotive industry as a model, where destination charges are already built into MSRP and displayed on Monroney labels, creating greater consistency between advertised and in-store pricing. NPDA outlined two primary recommendations for OEMs:

• Integrate freight charges into MSRP

• Reimburse dealers for setup, assembly, inspection, and delivery preparation costs

The group said aligning OEM pricing structures with FTC expectations would reduce dealer risk, improve transparency, and create a more consistent buying experience for consumers. The full white paper is available through the NPDA website.

WHY POWERSPORTS COULD BE VULNERABLE

Silas described powersports as especially exposed because of the number of commonly added charges attached to vehicle sales.

Freight fees, assembly charges, PDI costs, and build fees are frequently excluded from advertised pricing across dealership websites and listing platforms, he said.

Under the FTC’ s current interpretation, the gap between advertised pricing and actual customer cost may constitute deceptive advertising.

Silas urged dealers to carefully review all pricing across dealership websites, thirdparty marketplaces, and social media channels to ensure consistency.

That includes listing platforms such as Cycle Trader and salespeople’ s own social media posts promoting inventory.

According to Silas, dealers should ensure any advertised price reflects what any customer can realistically purchase the vehicle for, regardless of special rebate eligibility or incentive qualifications.

DEALERS URGED TO AUDIT ADVERTISING NOW

Silas recommended that dealers begin auditing pricing and advertising practices immediately rather than waiting for formal FTC scrutiny.

He pointed dealers toward Don Hall on LinkedIn, describing the Virginia Auto Dealers Association executive as one of the most active public voices tracking FTC enforcement developments.

Gene Silas can be reached at gsilas @ brightlinedealer. com. Jeff Barron can be reached at jbarron @ brightlinedealer. com.

The full episode of the Dealership fiXit Podcast is available on Spotify, Apple Podcasts, and YouTube.

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