TYSONS, Va. (Jan. 30, 2024)—U.S. Rep. Kelly Armstrong (R-N.D.) on Monday introduced the “FTC Redo Act” (H.R. 7101) in the House of Representatives, highlighting growing concern in Congress regarding the FTC’s flawed and costly Vehicle Shopping Rule (also known as the “CARS rule”).

This legislation would nullify the controversial Vehicle Shopping Rule and require the FTC to follow basic regulatory safeguards – which it failed to follow – should the agency choose to redo the rule. Such safeguards include allowing for adequate public comment and conducting a cost benefit analysis on actual data. Companion legislation (S. 3014) was introduced in the Senate by Sens. Jerry Moran (R-Kan.) and Joe Manchin (D-W.V.) last year.

“The FTC’s Vehicle Shopping Rule is simply terrible for consumers,” said NADA President and CEO Mike Stanton. “It will add massive amounts of time, complexity, paperwork and cost to car shopping for tens of millions of Americans every year.”

Earlier this month, NADA and the Texas Automobile Dealers Association (TADA) filed a legal challenge in the U.S. Court of Appeals for the 5th Circuit to stay the July 20, 2024, effective date of the FTC’s Vehicle Shopping Rule. In response to that legal challenge, the FTC issued an order delaying the effective date of the rule pending judicial review of the NADA/TADA petition.  However, despite FTC’s postponement, the Vehicle Shopping Rule remains the law, which is why the FTC REDO Act is necessary.

“Congress needs to pass the REDO Act because of the massive corners cut and significant errors the FTC made in rushing the Vehicle Shopping Rule into effect,” Stanton said. “American consumers deserve far better than the FTC’s improper, rushed, utterly flawed and we believe illegal process that resulted in a rule that will only make car buying more time consuming, costly, confusing and frustrating for everyone. America’s franchised dealers applaud Rep. Armstrong for his leadership to protect consumers and small business dealers against the FTC’s latest bureaucratic overreach.”