ACM: prices of used cars must be clearer

The Netherlands Authority for Consumers and Markets (ACM) has reminded the car industry of the rules about listing correct prices of used cars, including all additional costs. Businesses that still fail to do so can expect fines.

Edwin van Houten, Director of ACM’s Consumer Department, explains: “Price is one of the most important aspects on which consumers base their choices. They must be confident that they can buy that car for the price listed in the ad. In too many instances, we see that this is still not the case. Over the past few months, we have reminded dealers, platforms, and other market participants of these rules. The rules are simple, and aren’t new. Businesses that still fail to comply with the rules can expect fines.”

What do car dealers have to do according to the rules?

According to the rules, car dealers must comply with the following rules regarding prices:

• Prices of cars (including used cars) must include VAT and other unavoidable costs;
• List prices cannot include any subsidies for, for example, electric cars;
• The first price that consumers see in the ad must be a price that includes all mandatory costs.

Only then are consumers able to compare prices properly.

What was the problem?

ACM has received various reports from consumers about incorrect list prices of used cars. These reports mainly concerned prices that did not include VAT. When selling to consumers, dealers must always list prices that include VAT. In addition, ACM saw that possible government subsidies, such as subsidies for electric vehicles, had already been included in list prices. This is also prohibited. After all, sellers do not know whether consumers can or will apply for a subsidy. ACM has sat down with car dealers and used-car platforms to discuss the rules. A separate meeting for platforms was held. That generated more support for the rules among those platforms.