VIRGINIA AUTO DEALER vada.com 8 The Federal Trade Commission issued a comment period on a proposed trade regulation rule on motor vehicle sales. The Trade Regulation Rule (TRR) is onerous, and comments from those familiar with the business will be important. (Comments are due Sept. 12, 2022.) The problems with this TRR are too numerous to be covered in this article. However, we will explore issues that threaten to negatively affect your business. Before doing so, let ’s look at some questions the proposed TRR raises. Who is subject to it? A motor vehicle dealer licensed as such owns its vehicle inventory, and is engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, is covered. Why the emphasis on service if this is a TRR about sales? As we have noted frequently when writing about the creation of the Consumer Financial Protection Bureau by the DoddFrank Act, to address the FTC’s complaint that many of its functions were usurped by the CFPB, Congress gave the FTC expanded, primary jurisdiction over motor vehicle dealers exempt from CFPB jurisdiction. Having a service department is a necessary element for exemption from CFPB jurisdiction. This TRR covers those dealers subject to FTC jurisdiction. Aren’t the prohibitions and requirements already part of the law? Some say the prohibitions and requirements are not a big deal since they simply represent what the FTC already views as the law. Some of these prohibitions A Cease and Desist By Michael G. Charapp, Charapp & Weiss LLP Order for Every Dealer
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