The Monroney Sticker Edition
On cars, transparency, and evolution
Happy birthday to WITI co-pilot Noah Brier! You should fed-ex him some pretzels. Also, shout-out to the great Michael Williams for the idea behind this edition. -CJN
Colin here. If you’ve ever bought a car in the US, you’ve no doubt consulted a large white sticker on the side window. In addition to the price, it shows a slew of other data about the vehicle, including fuel economy, crash test rating, where the parts are from, as well as the Manufacturer’s Suggested Retail Price (MSRP) It’s a legal mandate: any dealership selling a new car must have one affixed, lest they get slapped with a thousand dollar fine. The stickers are required for any new vehicle up to 8500 pounds.
Why is this interesting?
As you may have guessed, this oversized sticker has an interesting backstory. Known as a Monroney sticker, it was introduced as an act of Congress, by Senator Almer Stillwell Monroney in 1958. Before the sticker, there was little to no transparency behind the costs of a vehicle, meaning lots of hidden riders could be added to the price. According to the Times in 2009,
The Automobile Information Disclosure Act of 1958 changed all that by requiring new cars to be labeled with the suggested retail price; details about, and prices for, standard and optional equipment; and other consumer information. The labels became known in the auto industry as Monroney stickers, named for the Oklahoma senator who pushed for passage of the legislation.
The motivation of Senator Almer Stillwell Monroney, a Democrat known as Mike, has become the stuff of urban legend. According to one story that has made the rounds in Detroit over the years, the senator’s daughter (or niece) had been cheated by a car dealer, prompting the lawmaker to use the might of the Senate to ensure that others would not be similarly misled.
As the Times later points out, the urban legend wasn’t true. Rather, It was a push for hyper transparency: “The dealer who is honest about the so-called ‘list price’ cannot compete with the one who ‘packs’ several hundred dollars extra into it so he can pretend to give you more on your trade-in,” Monroney said when introducing the bill in 1958.
The stickers are expected to evolve in the future—just as they have over time by taking into account environmental-related emissions and other elements of fuel economy. In fact, Alfa Romeo recently explored putting vehicle info including the Monroney data into the blockchain as an NFT. It will “generate a certificate that could be used to verify that the car has been serviced correctly, leading to a potentially higher resale value.” The relationship between consumers, dealerships, and car manufacturers will also change, but that’s probably best reserved for a future edition. (CJN)
Quick Links:
The Black Rifle Coffee IPO’s red flags (CJN)
Trick shots with red plastic cups (CJN)
A run across Mexico (h/t R. Anderson) (CJN)
--
WITI x McKinsey:
An ongoing partnership where we highlight interesting McKinsey research, writing, and data.
Design for sustainability. The "great cleanup" is underway across industries, and the quest for a sustainable future requires actions on many fronts, including a crucial aspect: design. Up to four-fifths of a product’s lifetime emissions are determined by decisions made at the design stage. Here’s what you need to know about green product development, R&D, and design for sustainability.—
—
Thanks for reading,
Noah (NRB) & Colin (CJN)
—
Why is this interesting? is a daily email from Noah Brier & Colin Nagy (and friends!) about interesting things. If you’ve enjoyed this edition, please consider forwarding it to a friend. If you’re reading it for the first time, consider subscribing (it’s free!).