Marci Kawski will moderate, "Changing the Rules of the Road—What the FTC CARS Rule Could Mean for the Auto Industry," at the American Bar Association's Consumer Financial Services Committee Meeting on Sunday, January 7, 2024.
In December, the FTC finalized its CARS (Combatting Auto Retail Scams) Rule, which will go into effect on July 30, 2024. Prohibitions under the Rule include bans on bait-and-switch practices, hidden charges, and misrepresentations about prices, financing, and car add-ons. The Rule also mandates clear disclosures of car prices regardless of whether the cars are financed or purchased with cash. The Rule requires dealers to tell consumers that they can decline optional add-on services or products. Furthermore, dealers cannot charge for add-ons that will not benefit a customer. Although consumer groups have lauded the CARS Rule, auto dealers and other actors in the auto marketplace have raised substantive and procedural concerns with the Rule. Some have described the Rule as redundant and overreaching. Others contend that the rule could expose entities that purchase Retail Installment Sales Contracts to liability. Our roundtable discussion will focus on the impact of the Rule and the possible legal challenges it may generate.
For more information, visit the event website.