FTC Pauses Car-Buying Protection Rule's Effective Date Amid Legal Challenge
National Automobile Dealers Association says agency acted arbitrarily and capriciously.
January 19, 2024 at 02:32 PM
3 minute read
The original version of this story was published on National Law Journal
The Federal Trade Commission has paused the effective date of its new rule designed to protect consumers from illegal tactics such as bait-and-switch and junk fees when purchasing a vehicle amid legal challenges by auto groups.
In announcing the pause, the FTC cited the National Automobile Dealers Association's petition urging the U.S. Court of Appeals for the Fifth Circuit Court to vacate or modify the agency's Combating Auto Retail Scams [CARS] rule, which was slated to go into effect July 30.
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