Published: April 2024

Strong support for FTC’s CARS—Combating Auto Retail Scams—Rule

More than a hundred groups signed on to a letter to Congress members asking them to support implementation of the Federal Trade Commission’s CARS Rule, which would combat unfair and deceptive auto dealer practices.

Consumer Action was one of more than a hundred organizations to sign on to a letter asking Congress members to support implementation of the Federal Trade Commission’s CARS Rule, which has been delayed due to court challenges by two industry groups, and to oppose the FTC REDO Act (S 3014 / HR 7101), which would kill the rule and harm the FTC’s ability to regulate car dealers going forward. Opaque and deceptive pricing structures employed by dishonest car dealers cost consumers time and money, and have disproportionately harmed Black, Hispanic and Native American consumers, who are charged higher prices for add-ons and other worthless junk fees. The CARS Rule will: require dealers to name their full cash price up front; demand clarity about aspects of the financing; prohibit dealers from scamming servicemembers; and allow the FTC to return money to defrauded consumers. Despite more than a decade of FTC efforts, it is clear that unfair and deceptive dealer practices persist, and will continue to cost consumers valuable time and money if there is not a rule in place to curb some of these abuses.

Lead Organization

Consumer Federation of America

More Information

Read the letter here.

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