{"id":789,"date":"2023-12-19T17:41:33","date_gmt":"2023-12-19T17:41:33","guid":{"rendered":"https:\/\/www.autobuyersmarket.com\/news\/?p=789"},"modified":"2025-05-05T10:25:10","modified_gmt":"2025-05-05T10:25:10","slug":"ftc-major-new-cars-rule-to-protect-consumers-from-scams-when-buying-vehicles","status":"publish","type":"post","link":"https:\/\/www.autobuyersmarket.com\/news\/2023\/12\/19\/ftc-major-new-cars-rule-to-protect-consumers-from-scams-when-buying-vehicles\/","title":{"rendered":"FTC: Major New \u201cCARS Rule\u201d to Protect Shoppers from Scams When Buying Cars"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"600\" src=\"https:\/\/www.autobuyersmarket.com\/news\/wp-content\/uploads\/2023\/12\/dealers_1702920883.jpg\" alt=\"The Combating Auto Retail Scams (CARS)\" class=\"wp-image-790\" srcset=\"https:\/\/www.autobuyersmarket.com\/news\/wp-content\/uploads\/2023\/12\/dealers_1702920883.jpg 900w, https:\/\/www.autobuyersmarket.com\/news\/wp-content\/uploads\/2023\/12\/dealers_1702920883-300x200.jpg 300w, https:\/\/www.autobuyersmarket.com\/news\/wp-content\/uploads\/2023\/12\/dealers_1702920883-768x512.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption class=\"wp-element-caption\">The Combating Auto Retail Scams (CARS) Rule makes it illegal for a dealer to make misrepresentations about certain topics that would affect a consumer\u2019s buying or leasing choices. Deceptive claims about price, financing, or add-ons are a few examples. File photo: Rblfmr, ShutterStock.com, licensed.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">WASHINGTON, D.C. &#8211; The Federal Trade Commission (FTC) has instituted a new rule designed to protect consumers from scams when <a href=\"https:\/\/www.autobuyersmarket.com\/\">shopping for vehicles<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.caranddriver.com\/news\/a46155818\/ftc-new-car-pricing-rule-explained\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Combating Auto Retail Scams (CARS)<\/a>&nbsp;Rule addresses several issues that consumers have complained about in recent years, including fraudulent behavior on the part of unscrupulous sellers such as bait-and-switch tactics, as well as so-called \u201cjunk fees\u201d added to the purchase prices of the vehicles for \u201c<em>unnecessary<\/em>\u201d services such as certification, reconditioning, or inspections.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">FTC\u2019s new CARS rule could save car shoppers $3.4 billion each year. <a href=\"https:\/\/t.co\/GISRo3Orn4\">https:\/\/t.co\/GISRo3Orn4<\/a><\/p>&mdash; Car and Driver (@CARandDRIVER) <a href=\"https:\/\/twitter.com\/CARandDRIVER\/status\/1736748197664489729?ref_src=twsrc%5Etfw\">December 18, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The CARS Rule is comprised of four distinct mandates, which are as follows:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>&nbsp;<strong>Prohibits misrepresentations about material information.<\/strong>&nbsp;The CARS Rule makes it illegal for a dealer to make misrepresentations about certain topics that would affect a consumer\u2019s buying or leasing choices. Deceptive claims about price, financing, or add-ons are a few examples.<\/li>\n\n\n\n<li><strong>Requires dealers to clearly disclose the offering price \u2013 the actual price anyone can pay to get the car, excluding only required government charges.<\/strong>&nbsp;Before they visit the dealership and throughout the transaction, consumers have the right to know the drive-off-the-lot price. If a dealer mentions optional add-ons, the dealer has to tell consumers they can say no. And if discussing a monthly payment, the dealer has to tell the consumer the total payment. <em>(The only costs that can be excluded from the offering price are required&nbsp;government charges&nbsp;\u2013 for example, taxes, license and registration costs, or inspection or certification fees.)<\/em><\/li>\n\n\n\n<li><strong>Makes it illegal for dealers to charge consumers for add-ons that don\u2019t provide a benefit.<\/strong>&nbsp;Under the CARS Rule, if the consumer won\u2019t benefit from an add-on product or service, the dealer can\u2019t charge for it.<\/li>\n\n\n\n<li><strong>Requires dealers to get consumers express, informed consent before charging them for anything.<\/strong>&nbsp;That means no surprise fees or hidden charges. Dealers must get a buyer\u2019s clear and informed \u201cyes\u201d to what they\u2019re buying and how much they\u2019re being charged.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The CARS Rule Was originally proposed by the FTC in June 2022, and slated to go into effect on July 30, 2024. When the rule is in force, the FTC stated that it is anticipated to save car-shopping consumers in the United States over $3.4 billion per year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The FTC has set up&nbsp;<a href=\"https:\/\/www.ftc.gov\/business-guidance\/resources\/ftc-cars-rule-combating-auto-retail-scams-dealers-guide\" target=\"_blank\" rel=\"noreferrer noopener\">a website<\/a>&nbsp;for auto dealers to allow them to review the rules in depth to ensure that they can be followed accurately.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><em>FTC CARS Rule: Combating Auto Retail Scams \u2013 A Dealers Guide: <\/em><\/strong><a href=\"https:\/\/www.ftc.gov\/business-guidance\/resources\/ftc-cars-rule-combating-auto-retail-scams-dealers-guide\"><em>https:\/\/www.ftc.gov\/business-guidance\/resources\/ftc-cars-rule-combating-auto-retail-scams-dealers-guide<\/em><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON, D.C. &#8211; The Federal Trade Commission (FTC) has instituted a new rule designed to protect consumers from scams when shopping for vehicles. The Combating Auto Retail Scams (CARS)&nbsp;Rule addresses several issues that consumers have complained about in recent years, including fraudulent behavior on the part of unscrupulous sellers such as bait-and-switch tactics, as well [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":790,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-789","post","type-post","status-publish","format-standard","has-post-thumbnail","category-market-updates","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.1.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"WASHINGTON, D.C. - The Federal Trade Commission (FTC) has instituted a new rule designed to protect consumers from scams when shopping for vehicles. 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