"FTC Implements New Rule to Combat Auto Dealership Scams and Protect Consumers"

The Federal Trade Commission (FTC) has introduced a new rule, called the Combating Auto Retail Scams Rule, aimed at preventing auto dealerships from using hidden fees and bait-and-switch tactics. The FTC estimates that these practices cost Americans $3.4 billion annually and add 72 million hours to their car shopping time. The rule prohibits misrepresentations about price and requires dealers to disclose the actual price, clarify that additional items like extended warranties are optional, and provide upfront information about the full monthly payment. It also bans add-on items that provide no value to consumers and prohibits dealers from falsely suggesting military affiliations. The rule comes in response to numerous consumer complaints and increased deceptive practices during the pandemic.