FTC Pauses CARS Rule Effective Date

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Summary

The Federal Trade Commission (FTC) has issued an order postponing the effective date of the Combatting Auto Retail Scams (CARS) Rule while a legal challenge against the rule is pending. The rule is aimed at preventing anticompetitive, deceptive, and unfair business practices in the car buying process. The FTC notes that the rule does not impose substantial costs on dealers who comply with the law, and the benefits to consumers, law-abiding dealers, and fair competition outweigh any potential costs. The order comes after two industry groups petitioned to overturn the rule, citing mischaracterizations of its requirements. The FTC will continue to monitor the situation and update the public accordingly.

Key Points

FTC issues order postponing the effective date of the CARS Rule
Rule aims to prevent anticompetitive, deceptive, and unfair business practices in the car buying process
Rule does not impose substantial costs on complying dealers
Benefits to consumers, law-abiding dealers, and fair competition outweigh any potential costs
* FTC votes 3-0 to approve the issuance of the order