THE PUSH To Stop the Misguided FTC Vehicle Shopping Rule In July of 2022, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (NPRM) and solicited public comment on a Rule regarding unfair and deceptive acts or practices under its authority in regard to auto dealers. The Rule would prohibit auto dealers from making misrepresentations during the car buying journey, including selling, leasing or arranging financing for motor vehicles. It would require accurate pricing disclosures in sales discussions and advertising and would require dealers to obtain a consumer’s express, informed consent for all charges. It would also prohibit the sale of add-on products or services that give no benefit to the consumer. Additionally, dealers are required to keep records of advertisements and customer transactions. The public comment period closed on Sept. 12, 2022. According to the National Automobile Dealer Association (NADA), auto retailing generates 17% of the nation’s retail sales, and this Rule would affect nearly 42 million consumer transactions each year, thus injecting large amounts of time, cost and unnecessary complexity into the vehicle sales process. And, according to a recent study by the Center for Automotive Research (CAR), the untested mandates in this Rule will cost consumers both time and money. This Rule, in essence, undermines industry efforts to streamline and improve customer experiences. Additionally, the Alliance for Automotive Innovation, which represents General Motors, Toyota Motor, Volkswagen and other major automakers, voiced concerns about the Rule and warned that “excessive regulation and micromanagement of the sales experience can do more harm than good for both consumers and the industry.” № 9 20 CATA UP TO SPEED
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