The National Automobile Dealers Association (NADA) recently released the following statement by its president and CEO Mike Stanton, on the Federal Trade Commission’s (FTC) issuance of its vehicle shopping rule:
“This regulation is heavy-handed bureaucratic overreach and redundancy at its worst, that will needlessly lengthen the car sales process by forcing new layers of disclosures and complexity into the transaction. The FTC made up data to support its claims, then rejected calls to slow down the process and test the effectiveness of its proposal with real consumers. We are exploring all options on how to keep this ill-conceived rule from taking effect.”
Background: 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. NADA filed extensive comments in response to the proposal. The FTC issued its final rule today.
Additional resources:
- Center for Automotive Research (CAR) Study showing the proposed regulation would add $38 billion in new costs.
- Explainer video on how the Vehicle Shopping Rule would work in the showroom.
- Extensive NADA comments pushing back against the regulations.
- “Car Shopping Ain’t Broke – So the FTC Will Fix It” – Wall Street Journal analysis of the rule.
