NADA has urged the FTC to scrap the proposed rule, go back to the drawing board and propose a rule that would go through a responsible regulatory process that involves all stakeholders. On Oct. 3, 2023, S. 3014, the FTC REDO Act, a bipartisan bill from Senator Jerry Moran (R-KS) and Senator Joe Manchin (D-WV), was introduced. The bill directs the FTC to redo the proposed FTC Vehicle Shopping Rule by: 1. Issuing an advance notice of proposed rulemaking 2. Conducting a quantitative study on auto retailing 3. Conducting consumer testing 4. Publishing a cost-benefit analysis based on actual data The FTC failed to perform any of these essential steps before proposing the Vehicle Shopping Rule. In an October press release, NADA shared the following key points: • The FTC has not followed a fair and transparent process in issuing this proposed rule, which would add more time and costs to the car buying process. Despite adding more paper to the sales process, the FTC counterintuitively (and without any analysis or support) assumes that this new rule would save consumers three hours per transaction and, in turn, save consumers $29.7 billion. The CAR report, with clear supporting evidence, shows that consumers would spend an additional two hours per transaction, with an overall cost of $38.1 billion. • This rule increases the complexity of the car-buying process, adding more paperwork for consumers while also creating inconsistent and unnecessary rules and burdens for small businesses. Vehicle sales are already extensively regulated with a document-intensive process. Under the rule, every time a consumer asks about a specific vehicle or monthly payments, there would be new written (and untested) disclosures involved. • Congress must stop the FTC’s rushed and flawed rule since adding additional regulatory burdens must be the result of an informed process. All the behaviors the FTC’s rule is aimed at addressing are already against the law, and the agency presently has sufficient enforcement authority to police any alleged wrongdoing. The FTC should work collaboratively with the auto industry, as it has in the past, to promote compliance without unnecessarily adding costs, lengthening transaction times and harming consumers. As of now, the FTC has not disclosed a timeframe for when the final rule will be released. NADA is urging members of Congress to join the conversation and cosponsor the FTC REDO Act in an effort to stop the misguided Vehicle Shopping Rule. « DID YOU KNOW? Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. cata-up-to-speed.thenewslinkgroup.org CATA UP TO SPEED 21
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