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Pro-Taxpayer, Competition Groups File Comments Opposed to FTC Overreach



Jonathan Collegio

Jonathan Collegio

Former Senior Vice President, Public Affairs

Americans for Tax Reform and the Open Competition Center this week submitted comments critical of the Federal Trade Commission’s proposed rule on auto retail.

From the comments:

“The rule enacts a host of new restrictions on auto dealers that would increase the complexity of the purchasing process for consumers, including new record-keeping and disclosure requirements that will likely increase transaction time. The new mandates put government in between consumers and retailers, an unwarranted federal intervention into negotiations between private parties. For example, one requirement would prohibit sellers from informing consumers about any aspect of a vehicle without first stating the initial selling price, even though the ultimate selling price could end up being much lower. …

“The FTC promulgated this rulemaking without an in-depth examination of the market, ignoring prior evidence that the industry generally functions well. The FTC’s cost-benefit analysis vastly overestimates the proposed rule’s benefit to consumers, raising critical questions about the agency’s methodology in promulgating the rule.”

The full comments can be viewed here.

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