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FTC Rule Would Make A Special Exception So Car Dealers Can Keep Ripping People Off
FTC Rule Would Make A Special Exception So Car Dealers Can Keep Ripping People Off-August 2024
2024-02-19 EST 22:09:14

Used cars are offered for sale at a dealership on July 11, 2023 in Chicago, Illinois

may be excluding car dealerships from its in a reportedly controversial set of proposed rules are finalized. According to , the plan would ban businesses from charging hidden and misleading fees and require them to show the full price upfront.

The rule would apply to industry and companies broadly, according to the outlet. Those industries include event ticketing, hotels and lodging, apartment rentals, and car rentals. If a company fails to comply, it and have to refund customers.

Car dealers, on the other hand, would be excluded if the on offering price and misrepresentation in its Motor Vehicle Dealers Trade Regulation Rule that was proposed back in June of 2022. It also seeks to ban junk fees and bait-and-switch advertising tactics when buying a car.

Auto News says that among the proposed rule’s requirements, before government fees or taxes are applied. A provision prohibiting misrepresentation would – in theory – “bar deceptive practices surrounding, among other things, the total cost, price and added features, other charges, terms and finality of financing and availability of discounts.”

In comments submitted earlier this year to the FTC, argued – rather unsurprisingly – that the junk fee proposal is “overly broad” and that dealers should be excluded because car sales already fall under the proposed . The association also reportedly said the junk fee proposal could end up conflicting with state and federal regulations like the and the .

“The commission must explain how any restriction on dealers resulting from this proposal would be affected by these other existing legal obligations,” .

He continued on, saying that if the Vehicle Shopping Rule isn’t withdrawn, dealers should be exempt from the FTC’s broader junk feel proposal “given that the proposed Vehicle Shopping Rule addresses this type of disclosure in a more comprehensive, and vastly different, manner.”

So, whether it’s from the or the Vehicle Shopping Rule, dealership junk feels may soon be a thing of the past. Blessings to all.

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