After a year and a half of bureaucratic process, the Federal Trade Commission announced new rules for car sales last week. The rules are aimed to limit so-called junk fees, bait-and-switch advertising, and surprise prices in car sales. The rules will require dealers to clearly disclose final pricing and financing terms before a buyer signs for a car.
The new rules don’t kick in until July 30, 2024. The FTC calls its new protections the Combating Auto Retail Scams (CARS) Rules. It predicts the new rules will “save consumers nationwide more than $3.4 billion and an estimated 72 million hours each year” spent car shopping. See: Hidden ‘junk fees’ are nickel and diming us out of our hard-earned dollarsWhat the rules ban The rules attempt to limit several practices common to some, but not all, car dealers. They include:
Bait-and-switch marketing: Advertising cars the dealer never had in stock or prices or financing terms the dealer will not honor
Junk fees: Fees for products or services that do not benefit the consumer. The FTC gives examples, including nitrogen in tires or additional warranties that duplicate a manufacturer’s warranty
Misleading buyers about optional fees: Telling buyers that extended warranties or other services are mandatory
Surprise fees: In a guide explaining the new rules to dealerships, the FTC says, “Under the CARS Rule, dealers must get consumers’ express, informed consent before charging them for anything. Period.”
Dealers must “provide the offering price — th …
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The new rules don’t kick in until July 30, 2024. The FTC calls its new protections the Combating Auto Retail Scams (CARS) Rules. It predicts the new rules will “save consumers nationwide more than $3.4 billion and an estimated 72 million hours each year” spent car shopping. See: Hidden ‘junk fees’ are nickel and diming us out of our hard-earned dollarsWhat the rules ban The rules attempt to limit several practices common to some, but not all, car dealers. They include:
Bait-and-switch marketing: Advertising cars the dealer never had in stock or prices or financing terms the dealer will not honor
Junk fees: Fees for products or services that do not benefit the consumer. The FTC gives examples, including nitrogen in tires or additional warranties that duplicate a manufacturer’s warranty
Misleading buyers about optional fees: Telling buyers that extended warranties or other services are mandatory
Surprise fees: In a guide explaining the new rules to dealerships, the FTC says, “Under the CARS Rule, dealers must get consumers’ express, informed consent before charging them for anything. Period.”
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