As a response, NADA and the Texas Automobile Dealers Association (TADA) filed a Motion in the U.S. Court of Appeals for the 5th Circuit to stay the July 30, 2024, effective date. The Motion follows a court challenge to the rule that was filed by NADA and TADA. The Motion is challenging the FTC in court to stop a rule that will add massive amounts of time, complexity, paperwork and cost to car buying and car shopping for tens of millions of Americans every year. The FTC’s Vehicle Shopping Rule is simply terrible for consumers. NADA and KADA will continue to provide updates on the litigation; here is a brief background: • On Jan. 4, 2024, NADA filed a court challenge against the FTC over its final Vehicle Shopping Rule. • The FTC claims its rule is in response to “chronic deceptive or unfair practices” in the auto retail marketplace. These assertions are misguided, completely unfounded and do not reflect the modern auto retail industry. • The rule is now final. It contains draconian penalties, and franchised dealers have been given less than eight months to comply with the significant and unnecessary regulatory burdens laid out in the final rule. Text of the Final Rule https://www.ftc.gov/system/files/ ftc_gov/pdf/p204800_ cars_rule.pdf#page=361 To learn more about this issue, please scan the QR codes. NADA Press Release https://www.nada.org/nada/ press-releases/ nada-releases-statement-ftcsvehicle-shopping-rule FTC Press Release https://www.ftc.gov/news-events/ news/press-releases/2023/12/ ftc-announces-cars-rule-fightscams-vehicle-shopping FTC CARS Rule: Combating Auto Retail Scams — A Dealers Guide https://www.ftc.gov/businessguidance/resources/ ftc-cars-rule-combating-auto-retailscams-dealers-guide The new CARS Rule: What you need to know — A Customer Guide https://consumer.ftc.gov/consumeralerts/2023/12/ new-cars-rule-what-you-needknow?utm_source=govdelivery WWW.KYADA.COM 23
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