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ARTICLE · 03 JANUARY 2024

FTC Finalizes CARS Rule

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The FTC remains focused on seeking monetary relief – and will be able to seek civil penalties of up to $50,120 for violations of the CARS Rule.

United StatesConsumer Protection
Ronald R. Urbach
Ronald R. Urbach
Alexa Meera Singh
Alexa Meera Singh
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Update

The FTC is postponing the effective date of the CARS Rule while a legal challenge brought by the National Automobile Dealers Association and the Texas Automobile Dealers Association is pending.

The trade groups have stated that the rule is "arbitrary, capricious, an abuse of discretion, [and] without observance of procedure required by law," in part because the FTC allegedly failed to reasonably evaluate the costs and benefits of the rule, and failed to show that a significant industry-wide problem exists that would justify the rule.

The Bottom Line

  • The FTC remains focused on seeking monetary relief – and will be able to seek civil penalties of up to $50,120 for violations of the CARS Rule.

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