FTC Delays Implementation of CARS Rule Amid Legal Challenge

Industry groups had requested a stay of the rule during litigation.

The Federal Trade Commission (FTC) has delayed the implementation of the Combatting Auto Retail Scams (CARS) Rule due to a legal challenge against the rule. Two industry groups have sought to overturn the rule due to the increase in compliance costs to dealerships, and requested a stay during the court challenge.

The commission stated, “The CARS Rule will save consumers more than $3.4 billion and an estimated 72 million hours each year shopping for vehicles by targeting persistent and illegal bait-and-switch scams and junk fees in the car buying process.“

The FTC contends the rule, which is set to go into effect June 30, 2024, “does not impose substantial costs, if any, on dealers that presently comply with the law, and to the extent there are costs, those are outweighed by the benefits to consumers, to law-abiding dealers, and to fair competition—as honest dealers will not be at a competitive disadvantage relative to dishonest dealers.”

As the Lord Leads, Pray with Us…

  • For Chair Lina Khan and members of the FTC as they seek to prevent American car buyers from being scammed in the sale process.
  • For the judges who hear the lawsuit to be prudent in their consideration of the federal regulation and the claims of the auto dealer industry.

Sources: Federal Trade Commission


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