FTC to hear from public on dealership transparency and CARS rule https://lnkd.in/euQtjjvC
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So excited for this! Took them long enough! The CARS Rule will take effect on July 30, 2024 What the CARS Rule Requires: • No Misrepresentations: The rule prohibits misrepresentations about key information, like price and cost. • Offering Price, Total Payment, and Add-Ons Optional: Dealers have to provide the offering price—the actual price any consumer can pay for the vehicle; tell consumers that optional add-ons (like extended warranties) are not required; and give information about the total payment when discussing monthly payments. • No Bogus Add-Ons: The rule prohibits dealers from charging for any add-on that does not provide a benefit to consumers. Examples of such add-ons include: warranty programs that duplicate a manufacturer’s warranty, service contracts for oil changes on an electric vehicle, GAP agreements that do not actually cover the car or neighborhood in which it is housed, or other parts of the deal, and software or audio subscription services on a vehicle that cannot support the software or subscription. • Get Consumers’ Consent: The rule requires dealers to get consumers’ express, informed consent for any charges that they pay as part of a vehicle purchase. #improvetheautobuyingprocess
FTC Announces CARS Rule to Fight Scams in Vehicle Shopping
ftc.gov
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FTC's CARS Rule will require dealers to provide additional transparency in vehicle pricing, F&I add-ons CLICK HERE https://bit.ly/44aESeI #glenviewfinance #subprimefinance #usedcardealer #autofinance #creditbuilder #independentdealer
MSN
msn.com
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The Federal Trade Commission (#FTC) has just unveiled the Combating Auto Retail Scams (#CARS) Rule, set to roll out on July 30, 2024. This initiative aims to curb deceptive practices in the automotive industry, focusing on eliminating "unexpected and unnecessary fees," according to FTC Chair Lina M. Khan. The CARS Rule addresses long-standing issues in the industry, particularly the notorious bait-and-switch advertising and the imposition of hidden junk fees. These deceptive tactics have often led to inflated costs and frustrating consumer experiences during vehicle purchases. Notably, the rule protects military personnel and their families, which unscrupulous practices have historically targeted. Given the higher burden of auto debt among servicemembers, especially the younger ones, the CARS Rule seeks to alleviate these pressures by promoting transparency and honesty in car sales. #CARSRule #ConsumerProtection #AutomotiveIndustry #AutobodyNews
FTC Implements CARS Rule to Combat Auto Sale Scams
autobodynews.com
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How to watch, participate in FTC CARS Rule session Jan. 18: Auto dealers seeking more information about the Federal Trade Commission's upcoming CARS Rule regulating car dealership advertising and finance and insurance practices can attend a virtual FTC open meeting featuring the topic Jan. 18. #cars #auto #car
How to watch, participate in FTC CARS Rule session Jan. 18
autonews.com
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The name alone of the recently finalized FTC rule is inexcusably dishonest: CARS- Combating Auto Retail Scams. Even though the most egregious components were removed, what remains will have many unintended- and negative- consequences for the consumer. And the articles on the rule are completely misrepresenting the expected impact: https://lnkd.in/e79n-bNJ https://lnkd.in/eaUDsH3X.
A new federal rule is about to make car buying a lot less expensive
thestreet.com
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Automotive Industry Specialist | Founder of BZ Consultants Group | Transforming Dealerships through Unbiased Insights & Strategic Guidance | Hosts, Facts Not Feelings🎙️
🚘 Significant Industry Update: FTC's CARS Rule Redefines Auto Retail 🚨 The auto industry is at a pivotal juncture with the Federal Trade Commission's (FTC) introduction of the CARS (Combating Auto Retail Scams) Rule. This stringent regulation goes beyond mere consumer protection to fundamentally alter dealership operations and marketing practices. Critical Changes Brought by the CARS Rule: 1. Transparent Pricing: The rule mandates upfront disclosure of vehicle pricing, eliminating "unlock price" or "call dealer" tactics. Every initial consumer communication about a specific vehicle must now include its price. 2. End of Misleading Advertising: Gone are the days of speed-reading disclosures, "view details," or fine print in advertisements. Dealerships must present clear, straightforward pricing without any hidden conditions. 3. Prohibition of Advertising Unavailable Vehicles: Dealers can no longer list vehicles for sale that are not actually available, ensuring consumers see only genuine offers. 4. Strict Record Retention Policies: Dealerships are required to maintain comprehensive records going back 24 months, adding a layer of accountability to their operations. 📑 The FTC has received more than 100,000 complaints in each of the past 4 years. These regulations represent a sweeping change, ensuring that consumers face a more transparent and straightforward car buying experience. The CARS Rule is not just about preventing scams; it's about instilling a culture of clear communication and trust in the auto industry. Industry Implications: This significant shift may pose challenges for dealerships in terms of compliance and operational adjustments. However, it ultimately levels the playing field, benefiting both consumers and ethical dealers by fostering a more transparent market. 🔍 For more details on the CARS Rule and its comprehensive impact, visit https://lnkd.in/gVJc3nyG #AutoIndustry #FTCCARSRule #Transparency #ConsumerProtection #AutomotiveRegulations #AutomotiveChange #RegulatoryCompliance Tom Kline ☎🐙 Brian Pasch, MA Andrea Amico John Acosta Dan Moore Troy "Turbo" Spring
FTC Announces CARS Rule to Fight Scams in Vehicle Shopping
ftc.gov
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The car dealership software vendor discovered a cyberattack June 19 and has told customers it will restore systems within days. The fallout from a cyberattack targeting CDK Global, a software provider for more than 15,000 car dealers across North America, is spreading as more customers disclose potential material impacts. At least five publicly traded car dealerships filed disclosures with the Securities and Exchange Commission since Friday. Sonic Automotive and Penske Automotive Group warned investors of potential impacts on Friday. Autonation, Group 1 Automotive and Lithia Motors filed with the SEC Monday. #cyberriskmanagement #thirdpartyriskmanagement #softwaresupplychainsecurity #grc #cyberinsurance
CDK cyberattack stalls industry as car dealers disclose widespread impacts
cybersecuritydive.com
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Though the FTC CARS Rule has been paused pending further legal review, we have been staying close to the conversation to best understand the implications to dealerships in advance of the effective date. Our recent guide provides an overview of the Rule, what it seeks to achieve, what it means for auto dealers and how to comply with it. ⬇️ Learn more: https://hubs.li/Q02sVfvv0 #jmagroup #automotive #dealerships #FTC
An Auto Dealer's Guide to Understanding the FTC CARS Rule
jmagroup.com
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Compliance is not optional.
The Federal Trade Commission's final version of its consumer-focused Combating Auto Retail Scams, or CARS, Rule enacted Dec. 12 preserved most of the numerous requirements it had proposed for the auto retail industry 18 months ago. And the breadth of the FTC's new rules — which set specific requirements for advertising, record-keeping, customer interactions and lineups of finance-and-insurance products and other add-ons — might find even the best dealerships having to adjust one or more processes before the mandates and prohibitions take effect July 30, 2024. "It's just not workable," National Automobile Dealers Association (NADA) CEO Mike Stanton said Friday of the regulations. "It's bad for consumers on a number of accounts. ... We're very disappointed and frustrated." Rick Case Automotive Group CEO Rita Case called the regulations an "octopus with 50 legs" which was "literally all-encompassing." "I think it's going to be quite difficult for the dealers to really understand the scope of it in order to really transfer that information to their associates and to their paperwork and to their process," she said. On Automotive News, read what the rules mean for #cardealers -- and what the FTC cut from them, including what Hudson Cook, LLP partner Jean Noonan called "certainly the most ill-advised provision." #autofinance #fandi
FTC rules could mean process changes at dealerships
autonews.com
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Reminder to dealership owners and managers: The new CARS Rule takes effect in July 2024. Have you read it yet? It's essential to take a moment and do so. For reputable dealers, it shouldn't change much, but it's a good thing if it does change the process of others. The rule is clear: no lying to customers, withholding rebates, or hiding the true total price to purchase. Make sure to disclose all the terms of the TILA section, and don't hide fees or add worthless items to an addendum tag. The law will also address the old-school practices of having a “back-up” contract (RISC), using dealer license plates to “lend” a vehicle to a customer to avoid title and DMV laws, packing payments, hiding ancillary products, etc. In other words, do business the right way, and remove the offenders from your stores or face the consequences of their actions. Lastly, claiming ignorance and deflecting blame to the scapegoat will no longer get you off the hook. Stores large and small, urban and rural, will be fined and shut down. You have been warned. Let's work together to make the car-buying experience transparent and honest for everyone involved. #Transparency #Honesty #AutomotiveIndustry
The new CARS Rule: What you need to know
consumer.ftc.gov
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