FTC is proposing Motor Vehicle Dealers Trade Regulation Rule

[Stephen8810]

It’s unfortunate that we need the FTC to step in to fix what should be common good business practices. But, I’ve purchased enough vehicles over the years to have experienced both the good and the bad. And somehow the bad don’t seem to go away on their own. .

The FTC is seeking our comments (by 9/12/2022) on a proposed rule that would require accurate pricing disclosures in dealers' advertising and sales discussions, require dealers to obtain consumers' express, informed consent for charges, prohibit the sale of any add-on product or service that confers no benefit to the consumer, and require dealers to keep records of advertisements and customer transactions.

Here’s a link to the comments section:
https://www.regulations.gov/commenton/FTC-2022-0046-0001

The proposed rule requires all dealers to disclose an Offering Price in any advertisement that references an individual vehicle or in response to any consumer inquiry about an individual vehicle, as well as on the disclosures required at various points in the negotiation.

The proposed rule requires all dealers to disclose an itemized menu of all optional add-on products and services along with prices on all dealer-operated websites, online services, and mobile applications as well as at all dealership locations.

The proposed rule requires all dealers to disclose, in any transaction that features a monthly payment, the total cost of the financing/leasing contract.

The proposed rule prohibits dealers from marketing or selling add-on products or services from which the targeted consumer would not benefit.

Before referencing any financing terms (other than Offering Price) for a specific vehicle or consummating a cash transaction, the dealer must disclose the total cost of purchasing the vehicle in cash—without any charges for optional add-ons or financing—in a format that itemizes the Offering Price; any discounts, rebates, or trade-in values; and required government charges.

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[rdr854]

Interesting. I think that the dealers will argue that dealer processing fee has value added and that all of the other junk charges - nitro fill, mud flaps, some superdooper expensive fee that gives you an oil change, floor mats and a key ring for $2,995 is perfectly fine under the proposed rule. Simply put, dishonest dealers will figure out a way to continue doing what they are doing today.

 

[Lightning.Dav]

Interesting. I think that the dealers will argue that dealer processing fee has value added and that all of the other junk charges - nitro fill, mud flaps, some superdooper expensive fee that gives you an oil change, floor mats and a key ring for $2,995 is perfectly fine under the proposed rule. Simply put, dishonest dealers will figure out a way to continue doing what they are doing today.

I share this opinion completely.

Shady dealers gonna be shady, dumb consumers gonna be dumb. Sadly.

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