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FTC Stays Vehicle Shopping Rule: Effective Date Delayed

Jan 19, 2024

In response to the petition for judicial review sought by NADA and the Texas Automobile Dealers Association (TADA), the Federal Trade Commission (FTC) has issued an Order postponing the effective date of the Vehicle Shopping Rule pending judicial review of the petition. The FTC’s order notes that “it is in the interests of justice to stay the effective date of the rule to allow for judicial review.”

While this action does not revoke or otherwise affect the rule’s requirements, it does mean that the previously announced effective date of July 30, 2024 is no longer the effective date for the Vehicle Shopping Rule.

On January 4, 2024, NADA and TADA filed a Petition for Review of the Vehicle Shopping Rule in the United States Court of Appeals for the Fifth Circuit, challenging the rule on the basis that it is “arbitrary, capricious, an abuse of discretion, without observance of procedure required by law, or otherwise not in accordance with law.” And on January 8, 2024, NADA and TADA filed a motion with the Fifth Circuit seeking a stay of the rule and expedited consideration of the Petition for Review.

NADA is continuing to support federal legislation to prevent the implementation and enforcement of the rule, including a provision in a House appropriations bill that would deny funding for enforcing the rule and the “FTC REDO Act” (S. 3014), which requires the FTC to follow basic regulatory safeguards should the agency choose to redo the rule.

Dealers are encouraged to continue to review NADA compliance materials and take steps to understand and be prepared for the rule. NADA will continue to update dealers as we learn more about timing related to compliance with the rule.

For more information, please review NADA’s simple one-page guide about the rule.