Ohio Consumer Law, MSRP Rules

MSRP

The MSRP (Manufacturers Suggested Retail Price) has been defined by the Ohio Attorney General as the list or sticker which means the final manufacturer's suggested retail price as stated on the federally mandated window sticker (aka Monroney). Some dealers have attempted to alter the MSRP to artificially inflate the price. Any attempt to alter the MSRP is a Consumer Sales Practice Act violation.

Most dealers still use a "prep charge" or "handling fee" for the sale of new vehicle. Some used car dealers may also be attempting to use a prep charge for their vehicles also. The Ohio Attorney General's position on this matter is quite detailed. It appears that as long as:

  1. the charge is for services actually rendered that are not required (or reimbursed) by the manufacturer,
  2. an itemized list of services is given to the consumer, and
  3. the prep charge or handling fee is negotiable,

the use of such charges are permitted. Typically, however, the auto dealer is telling the consumer about the prep charge after the consumer has reached an agreement to buy the vehicle with the dealer. By excluding the prep charge from the negotiations, a strong argument can be made that it is non-negotiable and hence, it is an Ohio Consumer Sales Practice Act violation.

To learn more about the Ohio's law and rules concerning the MSRP and invoices, Blackstone Legal Publications, Inc. has published a manual just for Ohio auto dealers that is recommended reading.