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Advertising Car Dealerships

Cozen O'Connor

Pennsylvania Strengthens Consumer Protections for Car Buyers

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Pennsylvania AG Michelle Henry has announced an amendment to the Pennsylvania Automotive Industry Trade Practices regulations to improve transparency for consumers in automobile advertising and sales....more

Hudson Cook, LLP

FTC and Online Used Car Dealer Agree to Settle Alleged Unfair and Deceptive Advertising and Business Practices Claims

Hudson Cook, LLP on

On July 2, 2024, the FTC filed a joint motion for entry of the FTC and the Company's stipulated order for permanent injunction, monetary judgment, and other relief to resolve allegations of misleading consumers who purchased...more

Ballard Spahr LLP

Update on Petition to Review FTC’s CARS Rule

Ballard Spahr LLP on

Petitioners in the challenge to the Federal Trade Commission’s (“FTC”) Combating Auto Retail Scams Rule (“CARS Rule”) filed their Petitioners’ Brief on March 15, 2004 in support of their petition for review, and a who’s who...more

BakerHostetler

The FTC Looks for Junk (Fees) in the Trunk

BakerHostetler on

The Federal Trade Commission (FTC) and the state of Connecticut recently alleged that Manchester City Nissan engaged in deceptive and unfair practices by adding illegal junk fees to the cost of cars. Although not the battle...more

Ballard Spahr LLP

Auto dealer trade groups challenge FTC CARS Rule in Fifth Circuit

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On January 5, 2024, two trade groups representing auto dealers filed a petition for review challenging the Federal Trade Commission’s (“FTC”) new Combating Auto Retail Scams Rule (“CARS Rule”). In the petition, the National...more

Morgan Lewis

FTC’s Final ‘Cars Rule’ on Dealer Sales Practices: Implications for Banks, Auto Finance, and ‘captives’

Morgan Lewis on

The Federal Trade Commission recently issued a final rule that is squarely aimed at changing the way dealers interact with customers in the financing process. The final rule takes effect on July 30, 2024....more

Kelley Drye & Warren LLP

FTC’s Auto Dealer Rule Promises Sweeping Industry Changes

Kelley Drye & Warren LLP on

On December 12, the FTC issued the Combating Auto Retail Scams Rule (“CARS Rule”) which will broadly regulate sales activities of motor vehicle dealers. Authorized by Congress through the Dodd-Frank Act and promulgated under...more

Seyfarth Shaw LLP

FTC Targets Bait-And-Switch Tactics And Hidden Fees With Rule For New Car Dealers

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After more than a year of review, the Federal Trade Commission (FTC) on December 12, 2023 launched its much-anticipated final rule targeting misleading advertising and sales tactics by new car dealers. First proposed in the...more

BakerHostetler

FTC Not Kidding that Discrimination Violates Section 5

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We all know that discrimination violates various federal and state laws, but the FTC has been insisting for a while now that it also violates Section 5. A recent joint complaint the agency brought with the State of Wisconsin...more

Seyfarth Shaw LLP

FTC Builds Case For New Car Dealer Rule With Complaint Alleging Junk Fees And Discriminatory Lending Practices

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On October 18, 2022, the Federal Trade Commission (FTC) announced a settlement resolving allegations that Passport Automotive Group, a Maryland-based automobile dealer group, packed junk fees into the cost of the vehicles it...more

Seyfarth Shaw LLP

FTC Receives Flurry Of Comments As Dealers And Others Oppose New Car Dealer Rule

Seyfarth Shaw LLP on

The Federal Trade Commission (FTC) received dozens of submissions from dealer trade associations, other industry participants, and members of Congress opposing the FTC’s proposed rules for dealers in connection with the...more

Troutman Pepper

Comments to FTC’s Proposed Motor Vehicle Trade Regulation Rule Due September 12

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On July 13, the FTC published its proposed Motor Vehicle Dealers Trade Regulation Rule in the Federal Register. ...more

Seyfarth Shaw LLP

FTC Begins Process To Adopt Rules For New Car Dealer Advertising And Sales

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On June 23, 2022, the Federal Trade Commission (FTC) announced that it has initiated the process to adopt regulations for dealers in connection with the advertising and sale of new cars. The proposed rules target “[d]ealer...more

Sheppard Mullin Richter & Hampton LLP

FTC Targets Junk Fees, Bait-and-Switch Advertising by Auto Dealers

On June 23, the FTC proposed a rule that would prohibit junk fees, bait-and-switch advertising, and other deceptive practices by auto dealers to protect consumers and honest dealers in the car-buying process...more

Venable LLP

FTC Starts the Engine on Car Sales Fees and Advertising Rulemaking, but Other Rulemaking Faces Major Questions

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The FTC is off to the races with another proposed rulemaking. On June 23, the FTC, by a 4-1 vote, issued a notice of proposed rulemaking (NPR) to combat what it perceives as “junk fees” and “bait-and-switch advertising...more

Troutman Pepper

FTC Proposed Ground-Breaking Federal Regulation of Motor Vehicle Dealer Sales Practices

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The Federal Trade Commission (FTC) has proposed a new and historic federal regulation specific to car dealers to address concerns of consumer deception in the sales process. On June 24, the FTC released a proposed Motor...more

Seyfarth Shaw LLP

Prominent Dealer Group Learns That Enforcers Aren’t Joking Around About Vehicle Price Advertising And Financing

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April Fool’s Day this year was no joke for a prominent dealer ownership group with locations in the Midwest and Southeast United States. On Friday, April 1, 2022, the Federal Trade Commission (FTC) and Illinois Attorney...more

Hudson Cook, LLP

Advertising Compliance: Catch up on the Recent "Buzz" Regarding Marketing to the Reasonable Consumer

Hudson Cook, LLP on

Does your dealership or finance company market to consumers? If so, read on. Do you love Trader Joe's? I'm going to assume you said yes based on the line at my local one, so read on. Do you want to know how bees...more

Hudson Cook, LLP

Indiana AG to Used Car Dealers: Do Not Pose as a Private Seller on Craigslist (or Elsewhere)!

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On January 15, 2021, Indiana Attorney General Todd Rokita entered into an Assurance of Voluntary Compliance with Moto Cars USA LLC, under which the AG alleged that Moto Cars violated Indiana's Deceptive Consumer Sales Act....more

Troutman Pepper

Arizona District Court Rules Dealership’s Advertising Violated TILA and Consumer Leasing Act

Troutman Pepper on

A federal district court in Arizona held in FTC v. Tate’s Auto Center of Winslow Inc. that the Federal Trade Commission (FTC) proved several automobile dealerships’ (collectively, “Tate’s Auto”) advertising failed to include...more

Hudson Cook, LLP

FTC Staff Report on Buying and Financing Cars: Part I

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In July 2020, the Federal Trade Commission (“FTC”) issued its “Staff Report on Buying and Financing Cars.” The Staff Report consisted of two separate reports – a report from the FTC’s Bureau of Consumer Protection (“BCP”)...more

Hudson Cook, LLP

Is Your Ad Clear and Conspicuous? Apparently it Depends.

Hudson Cook, LLP on

We’ve all heard the jokes about fine print before – the text is so small you could be agreeing to give the dealership your first-born child. However, for regulators the fine print is no laughing matter. The bottom line is...more

McGlinchey Stafford

FTC report highlights concerns with dealer advertising and add-on products

McGlinchey Stafford on

On July 30, 2020, the Federal Trade Commission (FTC) issued a Bureau of Consumer Protection Staff report titled Buckle Up: Navigating Auto Sales and Financing. The report includes findings from the FTC’s April 2017 study and...more

Hudson Cook, LLP

Georgia AG Warns Against Deceptive Advertising Related to COVID-19 Stimulus Payments

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The COVID-19 situation has turned everything on its head. Most retail commerce is shut down, many are working from home, and it has become commonplace to plausibly forget whether today is a Monday or a Friday. Despite all the...more

Hudson Cook, LLP

For Dealers, Many COVID-19 Questions, but Not Many Answers

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The coronavirus hit the auto sales, finance, and lease business suddenly and hard. Companies in those areas were not alone - the entire U.S. economy is wrestling with the virus's effects. Every area of commerce, it seems,...more

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