{"id":4453,"date":"2023-12-13T08:24:16","date_gmt":"2023-12-13T14:24:16","guid":{"rendered":"https:\/\/niada.com\/dashboard\/?p=4453"},"modified":"2024-09-19T15:25:15","modified_gmt":"2024-09-19T20:25:15","slug":"ftc-finalizes-vehicle-shopping-rule","status":"publish","type":"post","link":"https:\/\/niada.com\/dashboard\/ftc-finalizes-vehicle-shopping-rule\/","title":{"rendered":"FTC finalizes vehicle shopping rule"},"content":{"rendered":"\n<p>The Federal Trade Commission Tuesday finalized its automobile purchasing rule, which the agency says will combat \u201cjunk fees\u201d and \u201cbait-and-switch\u201d issues.<\/p>\n\n\n\n<p>The<a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2023\/12\/ftc-announces-cars-rule-fight-scams-vehicle-shopping\" target=\"_blank\" rel=\"noopener\"> Combating Auto Retail Scams (CARS) rule<\/a>, which will take effect July 30, 2024, will require automobile dealers to provide consumers with an offering price, disclose all optional add-ons, and give information about total payment when discussing the monthly payment. Dealers must also get consumers\u2019 \u201cexpressed, informed\u201d consent for any charges as part of the vehicle purchase. The FTC rule scrutinizes add-ons, which are part of the vehicle purchase.<\/p>\n\n\n\n<p>The National Independent Automobile Dealers Association expressed concern about the impact on dealers from the rule. The Center for Automotive Research (CAR) found that the 10-year cost of the proposed rule to consumers would exceed $38 billion and would add 2 hours per transaction. <a href=\"https:\/\/niada.com\/dashboard\/dealers-meet-with-lawmakers-during-day-at-the-hill\/\">NIADA members discussed the proposed vehicle shopping rule<\/a> with lawmakers during the National Policy Conference in September.<\/p>\n\n\n\n<p>\u201cIt\u2019s frustrating to see the FTC rush this rule out given the extensive questions, concerns and comments the FTC received about the proposal,\u201d said NIADA CEO Jeff Martin. \u201cWhen we met with the FTC at our Policy Conference in September, it was clear there were more questions than answers from the agency. Our members are not opposed to well-thought-out, reasonable and responsible regulation. But taking a small sample size and punishing the entire industry for the actions of a few rogue actors does more harm than good for consumers and dealers. We will review the over 370-page rule, help our dealers navigate the new compliance regulations, and explore other options to address some of the overregulation in this rule.\u201d<\/p>\n\n\n\n<p>The proposed rule was presented in June 2022. The agency received thousands of comments.<\/p>\n\n\n\n<p>The final FTC rule:<\/p>\n\n\n\n<p>\u2022 prohibits motor vehicle dealers from making certain misrepresentations in the course of selling, leasing, or arranging financing for motor vehicles<\/p>\n\n\n\n<p>\u2022 requires accurate pricing disclosures in dealers\u2019 advertising and sales communications<\/p>\n\n\n\n<p>\u2022 requires dealers to obtain consumers\u2019 express, informed consent for charges<\/p>\n\n\n\n<p>\u2022 prohibits the sale of any add-on product or service that confers no benefit to the consumer<\/p>\n\n\n\n<p>\u2022 requires dealers to keep records of certain advertisements and customer transactions.<\/p>\n\n\n\n<p>\u201cWhen Americans set out to buy a car, they\u2019re routinely hit with unexpected and unnecessary fees that dealers extract just because they can,\u201d said FTC Chair Lina M. Khan. \u201cThe CARS Rule will prohibit exploitative junk fees in the car-buying process, saving people time and money and protecting honest dealers.\u201d<\/p>\n\n\n\n<p>The rule also includes language to make sure members of the armed services receive accurate information about the cost and financing of the vehicle, moving the vehicle out-of-state and repossession.<\/p>\n\n\n\n<p>\u201cThe Department of Defense appreciates the FTC\u2019s CARS Rule,\u201d said Ashish S. Vazirani, Acting DoD Under Secretary of Defense for Personnel and Readiness. \u201cFor our service members and their families a car is an essential purchase, and this CARS Rule will help fight predatory practices that target our men and women in uniform. The Department is pleased to see the FTC issue the CARS Rule and believes it will contribute to service members\u2019 overall economic security and readiness.\u201d<\/p>\n\n\n\n<p>The FTC has developed a<a href=\"https:\/\/www.ftc.gov\/business-guidance\/resources\/ftc-cars-rule-combating-auto-retail-scams-dealers-guide\" target=\"_blank\" rel=\"noopener\"> website guiding dealers on the new rule<\/a>, including the definition of disclosing important facts about the deal, including offering price, clearly and conspicuously.<\/p>\n\n\n\n<p>\u201cUnder FTC law \u2013 and as defined in the CARS Rule \u2013 \u2018clearly and conspicuously\u2019 refers to a disclosure made in a way that\u2019s easy for consumers to understand and difficult for them to miss,\u201d the FTC website stated.<\/p>\n","protected":false},"excerpt":{"rendered":"The Federal Trade Commission Tuesday finalized its automobile purchasing rule, which the agency says will combat \u201cjunk fees\u201d&hellip;\n","protected":false},"author":1,"featured_media":3845,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_grid":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[39,28,3,54],"tags":[],"class_list":{"0":"post-4453","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance","8":"category-independent","9":"category-industry","10":"category-legislative","11":"cs-entry","12":"cs-video-wrap"},"_links":{"self":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/4453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/comments?post=4453"}],"version-history":[{"count":0,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/4453\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media\/3845"}],"wp:attachment":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media?parent=4453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/categories?post=4453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/tags?post=4453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}