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 (CARS Rule), related to the sale, financing, and leasing of covered motor vehicles by covered motor vehicle dealers. 89 FR 590 (Jan. 4, 2024). The CARS Rule, among other things, would have prohibited motor vehicle dealers from making certain misrepresentations in the course of selling, leasing, or arranging financing for motor vehicles, required accurate pricing disclosures in dealers’ advertising and sales communications, required dealers to obtain consumers’ express, informed consent for charges, prohibited the sale of any add-on product or service that confers no benefit to the consumer, and required dealers to keep records of certain advertisements and customer transactions. The final rule established July 30, 2024, as the effective date.

On January 18, 2024, the Commission issued an order postponing this effective date while a legal challenge against the rule in the U.S. Court of Appeals for the Fifth Circuit was pending. 89 FR 13267 (Feb. 22, 2024). On January 27, 2025, the U.S. Court of Appeals for the Fifth Circuit vacated the CARS Rule.