Automakers Implement Minimum Advertised Pricing Policies
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Automakers Implement Minimum Advertised Pricing Policies
- Starting October 1, 2026, Stellantis will implement Minimum Allowable Advertised Pricing (MAAP) for its Chrysler, Dodge, Jeep, and Ram vehicles, dictating the lowest price dealers can publicly advertise.
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This move follows similar policies by other major manufacturers like General Motors, Mazda, Toyota, Kia, and Hyundai, aiming for more consistent advertised prices.
Automakers are increasingly adopting Minimum Advertised Price (MAP) or Minimum Allowable Advertised Price (MAAP) policies, which set a floor for how low dealers can advertise vehicle prices. Stellantis is the latest to join this trend, with its new MAAP pricing requirements for Chrysler, Dodge, Jeep, and Ram vehicles taking effect on October 1, 2026.
These policies mean that while dealers can still sell a car for any price they choose, they are restricted in how low they can publicly advertise that price online, in print, or in other marketing materials. The advertised price, under the new Stellantis framework, will be based on a formula considering the Manufacturer’s Suggested Retail Price (MSRP), certain dealer add-ons, accessories, limited market adjustments, dealer discounts, and universal incentives.
The rationale behind MAP pricing is multi-faceted. Manufacturers aim to prevent price wars that can devalue their brand image, protect profit margins, and ensure fair competition among dealerships. Some argue it also offers a benefit to consumers by preventing dealers from advertising unrealistically low “bait-and-switch” prices to attract customers, only to reveal higher costs once they are in the showroom.
However, these policies can make it more challenging for consumers to easily compare the lowest possible prices across different dealerships when shopping online, as advertised prices may not reflect the absolute lowest sale price a dealer is willing to offer through negotiation or individual incentives. The Federal Trade Commission (FTC) has emphasized the importance of price transparency, stating that advertised prices should reflect the actual price any consumer can pay, including all mandatory fees, to avoid misleading buyers.