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FTC Won’t Extend Conversation On New Rules;  Dealers Respond

Written by FTC and NADA Press Release | Aug 31, 2022 4:39:55 PM

By the way, I have no problem with these new rules and I don’t know any of my dealers who are not already adhering to these new rules.  If you have not seen the specifics of these, click here. 

-Jerry Reynolds, The Car Pro

 
 
FTC Declines to Extend Comment Period on Proposed Auto Rule, Deadline For Comments Sept. 12

August 23, 2022

The Federal Trade Commission has declined to extend the public comment period for its proposed rule that would ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience. The deadline for members of the public to comment remains September 12, 2022.

In its decision declining to extend the deadline, the Commission notes that it has received requests from stakeholders asking to extend the deadline, as well as from stakeholders asking to keep the deadline as is. The Commission also notes that by the time the public comment period closes, members of the public will have had 80 days to review the proposed rule.

Members of the public can submit comments on the proposed rule at regulations.gov.

The Commission vote to decline the extension of the comment period was 5-0.

Source: FTC Press Release.

National Auto Dealer Association Not Happy 


TYSONS, Va. (August 23, 2022)— Today, NADA President and CEO Mike Stanton released the following statement in response to the Federal Trade Commission’s (FTC) denial of a comment period extension related to their proposed rulemaking affecting franchised auto dealers:

“The FTC’s refusal to grant a routine extension of a public comment period, particularly for a proposed rule of such sweeping magnitude that involved no advanced notice, further displays an unnecessary and misguided rush to judgement in this matter. This proposed rule would cause great harm to consumers by significantly extending transaction times, making the customer experience much more complex and inefficient, and increasing prices, and NADA again urges the FTC to go back to the drawing board before forcing a series of unstudied and untested mandates lacking evidence that will have such significant negative impacts on customers.”

Source: NADA Press Release.

Graphic Credit: Scott Maxwell LuMaxArt/Shutterstock.com.