FTC Regulation Tracker—January 2024

We ended last month's update noting that the Federal Trade Commission (FTC) had finalized its Combating Auto Retail Scams (CARS) Rule. Shortly following the Final Rule's publication, the National Automobile Dealers Association and the Texas Automobile Dealers Association challenged the legality of the Rule in the Fifth Circuit, and seeking a stay of the rule while the challenge was pending. In the face of this challenge, this month the Commission chose to stay the effective date of the Rule.

As the final versions of the dozens of proposed rulemakings the FTC has disseminated trickle in, we can expect to see more such challenges to the FTC's regulatory reach, and, likely, more indefinite stays. While nothing is certain, it seems only a matter of time before one or more of these challenges winds its way to the Supreme Court.