FTC Vehicle Shopping Rule

FTC Vehicle Shopping Rule

On Dec. 12, 2023, the Federal Trade Commission (FTC) announced its final Vehicle Shopping Rule that it derisively calls the “Combating Auto Retail Scams Trade Regulation Rule” or the “CARS Rule.”

The FTC’s Vehicle Shopping Rule is simply terrible for consumers, adding massive amounts of time, complexity, paperwork and cost to car buying and car shopping for tens of millions of Americans every year.

The FTC has failed at every juncture to justify why these wholesale changes to the way Americans shop for and purchase new cars are necessary and has failed to demonstrate how any of these changes would benefit consumers.

The rule had an initial effective date of July 20, 2024, for dealers to comply. But on Jan. 18, 2024, the FTC delayed the rule's implementation by granting a stay order. 

NADA continues to challenge the rule in court and supports federal legislation that would prevent the FTC from implementing or enforcing this ill-conceived rule.

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