However, the FTC has reiterated that it believes the new rule will provide customers with “critical protections from auto retail scams” and has added that the delay in the CARS rule’s effective date is to the detriment of consumers and will harm honest retailers.
Moreover, the FTC says, “Petitioners’ arguments for a stay rest on mischaracterizations of what the Rule requires of covered motor vehicle dealers, including inaccurate claims that dealers will need to overhaul their practices and substantially increase compliance costs.”
The FTC argues that the rule does not create any additional costs for law-abiding dealers and will foster fair competition, removing the unfair advantage that dishonest dealers have.
In the original release, Petitioners said the CARS rule would prevent dealerships from lying to customers about financing, cost information, and other vital issues. Some stipulations protect military members and their families from unscrupulous dealers.
