What’s New: The Federal Trade Commission unexpectedly released its final Vehicle Shopping Rule (now called the “Combating Auto Retail Scams (CARS)” Rule), which takes effect July 30, 2024.
The changes: In response to comments submitted by NADA and state and metro dealer associations, the FTC scaled back the proposed rule in several important ways.
Among other changes, the FTC eliminated requirements that dealers:
- Maintain on their website a list of all “add-on” products offered and the price of each such product,
- Provide a series of written disclosures related to the sale of “add-on” products, and
- Retain copies of “Add-On” Lists and documents describing “Add-On” products offered to consumers.
But: The final rule would still impose several new problematic oral and written disclosures, numerous ill-defined requirements, and additional burdensome record-keeping obligations.
In the media: NADA called out the problems with the rule in its press release, which has been picked up by multiple news outlets.
What’s Next: NADA is considering its legal options related to the final rule and continues to support legislation introduced in Congress that would prevent the rule from taking effect.
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