FTC-PR-240118-2 (Jan. 18, 2024) FTC Pauses CARS Rule Effective Date – Decision protects law-abiding dealers from uncertainty created by inaccurate claims that rule requires overhaul by honest dealers The Federal Trade Commission has issued an order (PDF) postponing the effective date of the Combatting Auto Retail Scams (CARS) Rule while a legal challenge against the rule […]
Category: CARS Rule
The Combatting Auto Retail Scams (CARS Rule) is a regulatory measure designed to protect consumers from deceptive practices in the auto retail market. Implemented by the Federal Trade Commission (FTC), the rule aims to enhance transparency and fairness in the automotive sales process by requiring clear disclosure of important information, such as the total price, financing terms, and any additional fees or charges. It also mandates that dealerships provide consumers with a detailed written agreement outlining the terms of the sale or lease, thereby helping buyers make informed decisions and reducing the likelihood of fraud and misleading tactics. This rule is a critical step towards ensuring that consumers are treated fairly and have access to accurate information when purchasing or leasing a vehicle.