News & Analysis as of

Disclosure Requirements Car Dealerships Federal Trade Commission (FTC)

Fox Rothschild LLP

Federal Court Will Hear Auto Dealers Challenge to New FTC Regulations

Fox Rothschild LLP on

On Oct. 7, the 5th Circuit Court of Appeals will hear arguments in a case that could significantly reshape how auto dealerships operate. The National Automobile Dealers Association is arguing that the Federal Trade...more

Hinch Newman LLP

1MM FTC Settlement With Online Used Car Dealer Over Alleged Misrepresentations and Failing to Deliver on Time

Hinch Newman LLP on

On July 2, 2024 the Federal Trade Commission announced that it initiated action against online used car dealer Vroom for allegedly misrepresenting that it thoroughly examined all vehicles before listing them for sale and...more

Hudson Cook, LLP

FTC and Online Used Car Dealer Agree to Settle Alleged Unfair and Deceptive Advertising and Business Practices Claims

Hudson Cook, LLP on

On July 2, 2024, the FTC filed a joint motion for entry of the FTC and the Company's stipulated order for permanent injunction, monetary judgment, and other relief to resolve allegations of misleading consumers who purchased...more

Husch Blackwell LLP

FTC Finalizes—and Then Pauses—CARS Rule Impacting Dealers, Auto Finance Companies

Husch Blackwell LLP on

On December 12, 2023, the Federal Trade Commission (FTC) announced it has finalized the Combating Auto Retail Scams Rule (CARS Rule), which imposes various obligations affecting dealers’ sales practices and will also impact...more

Alston & Bird

FTC Finalizes CARS Rule Imposing Substantial Regulatory Requirements on Auto Dealerships

Alston & Bird on

The Federal Trade Commission (FTC) has finalized its Combating Auto Retail Scams Trade Regulation (CARS) Rule, which will affect almost every aspect of auto advertising and sales. Our Consumer Protection/FTC Team explains how...more

Ballard Spahr LLP

AFSA asks House Appropriations Committee to block proposed FTC Motor Vehicle Dealers Trade Regulation Rule

Ballard Spahr LLP on

On June 21, 2023, the American Financial Services Association (“AFSA”) asked the House Appropriations Committee to include language in the Financial Services and General Government appropriations bill that would prevent the...more

Ballard Spahr LLP

FTC declines to extend comment period for proposed motor vehicle dealer rule

Ballard Spahr LLP on

The FTC has declined requests to extend the comment period for its proposed rule that would impose a number of new substantive and disclosure requirements on motor vehicle dealers in connection with the car buying or leasing...more

Seyfarth Shaw LLP

FTC Begins Process To Adopt Rules For New Car Dealer Advertising And Sales

Seyfarth Shaw LLP on

On June 23, 2022, the Federal Trade Commission (FTC) announced that it has initiated the process to adopt regulations for dealers in connection with the advertising and sale of new cars. The proposed rules target “[d]ealer...more

Holland & Knight LLP

New Rules of the Road: FTC's Proposed Changes to Car, Boat, Motorcycle and RV Sales Practices

Holland & Knight LLP on

The Federal Trade Commission (FTC) has issued a new proposed rule that aims to make the "motor vehicle"-buying process more clear and competitive, and also allow the FTC to recover money when consumers are misled or charged...more

Ballard Spahr LLP

FTC proposes new rule imposing prohibitions and disclosure requirements on auto-dealers in car-buying process

Ballard Spahr LLP on

The Federal Trade Commission (FTC) recently proposed a rule that would impose a number of new substantive and disclosure requirements on auto-dealers in the car-buying process. The FTC described the proposed Rule as one...more

Morgan Lewis

Proposed Trade Regulation Rule on Auto Dealer Sales Practices Could Dramatically Affect Auto Finance

Morgan Lewis on

By a 4-1 vote on June 23, 2022, the US Federal Trade Commission (FTC) issued a notice of proposed rulemaking that is squarely aimed at changing the way dealers interact with customers in the automotive financing process, with...more

Hudson Cook, LLP

Is Your Ad Clear and Conspicuous? Apparently it Depends.

Hudson Cook, LLP on

We’ve all heard the jokes about fine print before – the text is so small you could be agreeing to give the dealership your first-born child. However, for regulators the fine print is no laughing matter. The bottom line is...more

Hudson Cook, LLP

Menu? We Don't Need No Stinkin' Menu. Yes, You Do!

Hudson Cook, LLP on

As you know, the pandemic shelter-at-home orders forced the closing of dealerships across the country. I suspect that the new ways dealerships have developed to continue to move the metal have inspired some dealerships to...more

Hudson Cook, LLP

AFSA Extra Credit Podcast: Auto Remote Sales Compliance

Hudson Cook, LLP on

The Federal Trade Commission's Cooling-Off Rule has been around since 1972 (it became effective in 1974), but generally has been a non-issue for dealers until the Coronavirus pandemic when dealers were forced to conduct...more

Ballard Spahr LLP

FTC Consent Order Creates Uncertainty for Advertising of Credit, Lease Offers

Ballard Spahr LLP on

A recent Federal Trade Commission (FTC) consent order with two Ohio auto dealers creates uncertainty not only for auto dealers, but also for all other businesses advertising credit or lease offers. The order settled...more

Manatt, Phelps & Phillips, LLP

Regulators Keep Their Feet on the Gas in Actions Against Auto Lenders; NY AG Latest to Bring Suit

Why it matters - The automotive industry is continuing to face heavy scrutiny from regulators. On the heels of a Federal Trade Commission operation and new oversight from the Consumer Financial Protection Bureau, the...more

Ballard Spahr LLP

FTC Follows in CFPB Footsteps with GLBA Privacy Notices

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The Federal Trade Commission (FTC) recently proposed amendments to its Gramm-Leach-Bliley Act (GLBA) rules requiring motor vehicle dealers to send their customers an annual privacy notice. The amendments would allow motor...more

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