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National Auto Dealers Association (NADA)Jun 6, 20241 min read

Subcommittee Passes Legislation to Stop FTC’s Vehicle Shopping Rule

The House Financial Services and General Government Appropriations Subcommittee passed the fiscal year (FY) 2025 Financial Services and General Government (FSGG) appropriations bill, which included an NADA-backed provision that would stop the Federal Trade Commission (FTC) from implementing or enforcing the Vehicle Shopping Rule (or “CARS” Rule) until Sept. 30, 2025.

The Vehicle Shopping Rule is simply terrible for consumers. It will add massive amounts of time, complexity, paperwork, and cost to car buying and shopping for tens of millions of Americans every year. (Issue Brief)

A recently updated study, based on the final rule, from the Center for Automotive Research (CAR) found that the Vehicle Shopping Rule will increase costs by $24.1 billion over 10 years, which consumers and small business dealers will have to absorb. Overall, the mandates of the rule would add at least an hour to the car-buying process and cost consumers $1.3 billion per year in lost time.

The House Appropriations Committee is expected to consider this legislation next week. Additionally, NADA continues to challenge the rule in court.

For more information, read the joint NADA, American International Automobile Dealers Association (AIADA), and National Association of Minority Automobile Dealers (NAMAD) letter of support for the FY 2025 FSGG appropriations bill.