FTC Finalizes CARS Rule

The FTC's Combating Auto Retail Scams rule (CARS Rule), intended to target bait-and-switch tactics and hidden junk fees in vehicle shopping, is now finalized. Last summer, the FTC issued a Notice of Proposed Rulemaking related to motor vehicle shopping, and received tens of thousands of comments from consumers, servicemembers, auto dealers and others. The FTC made substantial changes to the proposed rule to address common vehicle buying scams and ensure that auto dealers can compete on a level playing field.

The CARS Rule requires motor vehicle dealers to:

• Not misrepresent key information, including the costs or terms of purchasing or leasing a vehicle, the costs of other features or add-ons, the availability of a specific vehicle at an advertised price, and if the consumer reviews or ratings of the dealer's services are unbiased, independent or ordinary consumer reviews or ratings.