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FTC Issues Final Vehicle Shopping Rule Effective on July 30, 2024

Dec 14, 2023

In June of 2022, the FTC proposed a massive new rule that would dramatically impact the automotive sales process by requiring new disclosures and paperwork to combat activity that is already illegal.

This week the FTC issued the Final Rule dubbed the Combating Auto Retail Scams (CARS) Rule, the Final Rule will be effective July 30,2024.

NJ CAR, NADA and countless other Dealer Associations from across the country filed extensive comments opposing the proposed rule. These efforts were successful in getting rid of some of the more burdensome provisions, such as requirements that dealers:

  1. Maintain on their website a list of all “Add-On” products offered and the price of each such product.
  2. Provide a series of written disclosures related to the sale of “Add-On” products.
  3. Retain copies of “Add-On” Lists and documents describing “Add-On” products offered to consumers.

The Final Rule still leaves many provisions that are redundant, and will only serve to burden car dealers with unnecessary paperwork, and therefore lengthening the car buying process for consumers.

The general requirements of the “CARS” Rule are as follows:

  1. Prohibits misrepresentations about material information.
  2. Requires dealers to clearly disclose the offering price – the actual price anyone can pay to get the car, excluding only required government charges.
  3. Makes it illegal for dealers to charge consumers for add-ons that don’t provide a benefit.
  4.  Requires dealers to get consumers’ express, informed consent before charging them for anything.

NJ CAR is currently conducting a comprehensive review of the Final Rule to evaluate its impact on New Jersey dealers and provide further guidance…


If dealers have questions about this topic or any other questions, they should contact Greyson P. Hannigan, NJ CAR’s Director of Legal & Regulatory Affairs at (609) 883-5056, Ext. 340 or via email at [email protected].