On July 13, 2022, the Commission issued a Notice of Proposed Rulemaking (NPRM) soliciting public comment on a proposed Rule regarding unfair or deceptive acts or practices under its authority with respect to motor vehicle dealers described in section 1029(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law No. 111-203. 87 FR 42012 (July 13, 2022). The proposed rule would prohibit motor vehicle dealers from making certain misrepresentations in the course of selling, leasing, or arranging financing for motor vehicles, require accurate pricing disclosures in dealers’ advertising and sales discussions, require dealers to obtain consumers’ express, informed consent for charges, prohibit the sale of any add-on product or service that confers no benefit to the consumer, and require dealers to keep records of advertisements and customer transactions. The public comment period closed on September 12, 2022.

On January 4, 2024, the Commission issued a final rule, titled the Combating Auto Retail Scams Trade Regulation Rule, related to the sale, financing, and leasing of covered motor vehicles by covered motor vehicle dealers. 89 FR 590 (Jan. 4, 2024). This final rule, among other things, prohibits motor vehicle dealers from making certain misrepresentations in the course of selling, leasing, or arranging financing for motor vehicles, requires accurate pricing disclosures in dealers’ advertising and sales communications, requires dealers to obtain consumers’ express, informed consent for charges, prohibits the sale of any add-on product or service that confers no benefit to the consumer, and requires dealers to keep records of certain advertisements and customer transactions. The final rule established July 30, 2024, as the effective date.

However, on January 18, 2024, the Commission issued an order postponing this effective date while a legal challenge against the rule is pending. 89 FR 13267 (Feb. 22, 2024).