PROTECTING POWERSPORTS DEALERS
New analysis calls for integrated MSRP and reimbursement for dealer setup to align with FTC transparency requirements. In order to protect franchised dealers, the National Powersports Dealer Association (NPDA) has released a white paper examining the growing conflict between Federal Trade Commission (FTC) “all-in” pricing requirements and the current pricing structures used by powersports manufacturers.
The white paper outlines how dealers are being placed in an untenable position. While the FTC now mandates that the most prominent advertised price include all mandatory fees — such as freight and setup — OEMs continue to publish MSRPs that exclude these costs, leaving dealers exposed to legal, competitive and reputational risk.
“Dealers did not create this problem, but they are the ones being held accountable,” explains NPDA director Michael Maledon. “The current system rewards opacity and punishes transparency. It’s time for manufacturers to modernize their pricing structures and align with today’s consumer protection standards.”
The white paper compares the powersports industry to the automotive sector, where destination charges are already included in the MSRP on the Monroney Label — providing clarity and consistency for consumers and dealers alike.
NPDA Calls for Two Immediate Actions:
1. Integrated MSRP
OEMs should include freight or destination charges in the MSRP so consumers see the same price online and on the dealer lot.
2. Dealer Reimbursement for Setup
OEMs should adopt a formal reimbursement model for required setup, assembly, inspection, and delivery preparation.
“It is time for manufacturers to be part of the solution,” concludes Maledon. “Dealers want to compete on a level playing field and build trust with consumers. That starts with a pricing system that is transparent, fair, and compliant.”
Read the full white paper at:
https://lnkd.in/ddB5WQCj
