As advertising and marketing strategies in the automotive sector continue to evolve in response to advancing technology and changing consumer expectations, advertisers are encountering new questions—accompanied by intensifying regulatory scrutiny. From origin and environmental claims to influencer content and media generated by artificial intelligence (AI), advertisers in the automotive space face an ever-changing set of legal considerations and risks. The following key takeaways outline the foundational principles and emerging risks shaping automotive marketing practices today, with practical guidance for navigating the winding road of compliance.
- Core Principles of Automotive Marketing: Like all forms of marketing, automotive marketing is subject to core truth-in-advertising principles: it must be truthful, not deceptive or unfair, and substantiated prior to dissemination. As a general rule, claims must be factually accurate (i.e., literally truthful). Of note, technically accurate claims may still be deceptive if the overall net impression conveyed is misleading. Material terms—those likely to impact a consumer’s purchasing decision—are expected to be clearly and conspicuously disclosed, rather than used to offset potentially misleading claims. As discussed below, the unique aspects of the automotive industry present complex compliance issues that extend beyond general advertising law principles and require cross-functional familiarity with, among others, safety regulations, environmental marketing standards, complex supply chain considerations, data privacy and connectivity issues, and warranty laws.
- Navigating Origin Claims in Automotive Marketing: US-origin marketing claims are increasingly coming into focus, particularly with shifts in consumer demand amid the threatening realities of material tariffs on cars, light trucks, and automotive parts. These claims require robust substantiation and careful qualification—unqualified representations may mislead consumers if the underlying product contains foreign components or parts. As a general rule, qualified claims present lower risk than broad, unqualified claims (e.g., “Made in USA”) which are unlikely to be substantiated. Of note, advertisers must also consider country-of-origin marketing requirements regulated by US Customs and Border Protection and the American Automobile Labeling Act.
- Navigating Environmental Claims in Automotive Marketing: The Federal Trade Commission’s (FTC’s) Guides for the Use of Environmental Marketing Claims (Green Guides) serve as the principal source of guidance on environmental marketing issues. Although the Green Guides themselves are not binding, the FTC can (and has) taken action against companies who do not comply with the outlined principles. And, the Green Guides remain influential in shaping best practices around environmental claims, emphasizing substantiation, clear qualifications, and avoiding overstatements. Advertisers should also be aware of state-specific laws and regulations, some of which adopt the Green Guides and others of which may impose additional requirements, considerations, and risks. In general, environmental marketing claims demand a high level of substantiation and documentation. Even aspirational claims must be accompanied by documented evidence of efforts, and advertisers should be mindful that environmental marketing claims must accurately reflect the entire lifecycle of a vehicle. Even if a particular aspect of a vehicle is environmentally beneficial, a more general claim may be misleading if it overstates the overall environmental benefit of the vehicle.
- Navigating the Use of CGI/AI in Automotive Marketing: CGI and AI technologies offer potential cost efficiencies and increased creative flexibility for advertisers in the automotive space. But while the use of CGI and AI may enable the creation of marketing materials before physical production models are made available, these tools present material risk—particularly where they are used to portray vehicle capabilities, features, or performance aspects that have not yet been tested (let alone substantiated). Hyper-realistic visuals may be cost-effective, but if they do not reflect a consumer’s actual experience with the product or the product’s actual features and attributes, they risk being misleading. Transparency is key; at a minimum, advertisers should identify or disclose the use of CGI and AI in a clear and conspicuous way.
- Navigating the Use of Influencers, Endorsements, and Consumer-Generated Content in Automotive Marketing: As regulators continue to focus efforts on influencer marketing, companies must take steps to mitigate the risks associated with this once novel form of advertising. If there is an unexpected material connection between a company and an influencer promoting that company’s brand, product, or service, it must be clearly and conspicuously disclosed to consumers. Of note, material connections are not limited to monetary compensation—they may take the form of free products or samples, free test drives, loaner vehicles, admission to events, etc. Although popular social media platforms have adopted built-in disclosure mechanisms, companies should not rely solely on these tools. Companies must also be mindful when resharing or reposting consumer reviews or comments, particularly where such content may not reflect the typical consumer experience or opinion.
Automotive stakeholders that integrate these principles into their marketing strategies—balancing innovation with regulatory awareness—will be better positioned to minimize legal exposure and build lasting brand credibility. Prior substantiation, thoughtful disclosures, transparency, and consistent messaging across platforms is critical to delivering compliant, effective campaigns in an increasingly complex advertising environment.