FTC Targets More Dealer Tactics in an Expansion of Proposed Dealer Rules

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This summer, the FTC announced that it was done putting up with dealers and their scammy sales tactics. The agency announced that it was targeting things like junk fees and muddy language so people could know what they were getting into. Apparently, those rules were enough to get the White House’s attention, as Automotive News reports the FTC is broadening those rules.

On October 26, President Biden made remarks that announced that he was directing the FTC to target junk fees and other dealership practices that tried to juice more money out of consumers. The proposed rules aren’t just for the auto sales industry, either, but auto sales are the predominant industry in these things happen in. The agency is targeting, from Auto News:

Misrepresenting or not disclosing “the existence of any fees, interest, charges, or other costs that are not reasonably avoidable for any good or service” in ads or marketing.

Misrepresenting or not disclosing if “fees, interest, charges, products or services are optional or required.”

Misrepresenting or not disclosing “any material restriction, limitation or condition concerning any good or service that may result in a mandatory charge … or that may diminish the consumer’s use of the good or service, including the amount the consumer receives.”

Misrepresenting that a customer owes for “any product or service the consumer did not agree to purchase.”

Charging for anything “without express and informed consent.”

Charging for “fees, interest, goods, services or programs that have little or no added value to the consumer or that consumers would reasonably assume to be included within the overall advertised price.”

Misrepresenting or not disclosing “the nature or purpose of any fees, interest, charges or other costs.”

While many are in favor of the proposed rule changes, FTC commissioner Christine Wilson suspiciously disagrees with the changes. She said the rules “rely on flawed assumptions and vague definitions, ignore impacts on competition and divert scarce agency resources from important law enforcement efforts.” The agency expected opposition from multiple industries over the regulations.