The FTC and the “Vehicle Shopping Rule”
In the News: The FTC and the “Vehicle Shopping Rule”
By Tom Wolf, CPA
A recent article (July 19) from Automotive News reported on how a House of Representatives spending bill contained a block on the Federal Trade Commission (FTC) from initiating its proposed new rules for dealerships.
(The article can be read here with a paid subscription.)
Both the U.S. House Appropriations Committee and the U.S. House Financial Services and General Government Subcomittee support a spending bill that blocks the FTC from enacting and enforcing the proposed dealership regulations. Those proposed regulations:
- Required more disclosures and consent on products and accessories that were not installed by the vehicle’s manufacturer (i.e. F&I, accessories)
- More oversight on pricing that would encourage more transparency with overall vehicle and monthly vehicle costs
The House bill hopes to get around those proposed regulations by prohibiting the money it appropriates for the FTC to be used to “finalize, implement or enforce” these new rules.
The National Automobile Dealers Association also has been against the new FTC regulations which they are calling the “Vehicle Shopping Rule.” Read more from them here.
Stay in touch as there is sure to be more action on this issue in the near term.
Dealership Experts
Tom Wolf, CPA is a tax advisor specializing in dealership accounting and automotive industry finance. With over 15 years of experience helping dealerships maximize tax savings and navigate complex depreciation rules, Tom combines deep technical expertise with practical insights. He is passionate about empowering dealership owners to make informed financial decisions that drive growth and profitability.