JB B.’s Post

The 🚗 Latest on the CARS Rule Legal Challenge. Last month, the FTC filed a brief defending its CARS Rule and addressing industry criticisms. The rule aims to penalize deceptive practices in auto retail, reinforcing consumer protection. Stay updated on the developments and its potential impact F&I product compliance for auto dealers and lenders. 👉 Read the Full Update - https://bit.ly/3Krr9Zd #consumerprotection #autoretail

The Federal Trade Commission’s Combatting Auto Retail Scams policy, better known as the CARS rule, aims to make the #carbuying process more transparent. However, many dealers say the commission’s new guidelines are too strict, create confusion for customers, and punish businesses that did nothing wrong. On this episode of #DrivingSolutions, host Jim Fitzpatrick is joined by Rusty West of Market Scan, an automotive payments platform recently acquired by S&P Global. An automotive veteran himself, West elaborates on what the #CARS rule asks of dealers and how they can prepare their businesses for when the law goes into effect on July 30. Watch the full video now: https://bit.ly/3vKOiBQ

Following the FTC's Open Commission meeting today where staff members discussed the CARS Rule, the FTC issued an order postponing the effective date of the CARS Rule while a legal challenge against the rule is pending. The Commission notes that if the court reviewing the rule grants expedited review, as requested, a stay of the effective date should not postpone implementation of the Rule by more than a few months, if at all. The rule was set to go into effect July 30, 2024. #ftc #dealers #dealerships

Unpacking the FTC CARS Rule: Express, Informed Consent Attention retail auto industry! James Ganther dives deep into the FTC CARS Rule in our latest "Drop the Bow Tie" video. This episode focuses on a critical aspect: Express, Informed Consent. What is it, and why is it a game-changer? The video unpacks the definition, highlighting key points like disclosing charges clearly (both upfront cost and financed amount) and ditching pre-checked boxes for genuine customer consent. Challenges? The Rule throws a curveball at traditional signed documents. James explores the legal implications and emphasizes the importance of transparency and customer respect. But wait, there's more! The ongoing litigation surrounding the CARS Rule means future guidance is likely. We'll be back with updates as they develop. #FTCCARS #ExpressInformedConsent #DropTheBowTie

On Tuesday (July 2), the Federal Trade Commission (FTC) took an action against Texas-based online used car dealer Vroom for deceiving customers and failing to deliver on time. Vroom has agreed to a proposed settlement to pay $1 million for consumer redress. Key Points: - Allegations: Vroom misrepresented the thoroughness of vehicle inspections, failed to obtain consent for shipment delays, and did not provide prompt refunds. - Consumer Complaints: Reports of vehicles arriving with issues like loud grinding noises, bald tires, and worn brakes. - Regulatory Violations: Failure to provide "Buyers Guide" with warranty information and terms before sale, and not posting warranty terms online as required. Settlement Terms: - Pay $1 million to the FTC for consumer refunds. - Prohibited from making misleading claims about inspections and shipping. - Must comply with the Used Car Rule, Pre-Sale Availability Rule, and MITOR. Impact: This settlement ensures that Vroom will adhere to federal regulations, providing better protection and transparency for consumers purchasing used cars online. Action Required: Consumers who believe they were harmed by Vroom’s practices should monitor communications from the FTC for potential eligibility for refunds. Stay informed on key regulatory updates by following Global Regulatory Insights! #GRI #RegulatoryUpdates #Compliance #LegalIntelligence

What will the CARS Rule look like in its final form? How will dealers document the consumers consent to the figures and disclosures? AutoTrainer can aid a Dealer in their efforts to adhere to the CARS Ruling and other compliance concerns.

News of the FTC’s stay of the CARS Rule broke while we were in DC for the WANADA Public Policy Day. Fortunately, we had Jim Ganther, CEO of Mosaic Compliance Solutions, to help us break it all down. Show Notes with links: https://lnkd.in/eKecsusg The FTC's CARS Rule, aimed at regulating auto dealership practices, hits a roadblock as the U.S. appeals court reviews challenges from major auto dealer associations. FTC postpones CARS Rule enforcement pending 5th U.S. Circuit Court of Appeals decision, following petitions from NADA and Texas Automobile Dealers Association. The Rule, initially set for July 30, targets dealership advertising and finance/insurance practices, but faced industry backlash for perceived operational impacts. FTC criticized the challenge as meritless, citing potential consumer harm and industry dishonesty due to delays, but acknowledges the current legal uncertainties. NADA supports legislative efforts to impede the Rule and commits to educating dealers about compliance, despite the postponement. "We’re very pleased with that result,” Paul Metrey, NADA's EVP of public policy, expressed.

The FTC has finalized the Combating Auto Retail Scams (CARS) Rule, which aims to protect consumers during the car purchase process by preventing common scams, including bait-and-switch tactics and hidden junk fees. According to FTC estimates, the rule is expected to save customers more than 72 million hours and $3.4 billion annually. It also includes language protecting members of the military, who are frequent targets of predatory practices. The CARS Rule passed with a 3-0 vote and will take effect on July 30, 2024. NADA President and CEO Mike Stanton came out against the rule, arguing that it will “lengthen the car sales process by forcing new layers of disclosures and complexity into the transaction.” FTC Chairwoman Lina Khan claims that it will aid in “saving people time and money and protecting honest dealers.”   Source:  https://lnkd.in/e-Wy-RhG   #InvestmentBanking #MiddleMarket #Finance #MergersAndAcquisitions #PrivateEquity #CapitalRaising #Automotive #CARS #FTC #Dealerships #NADA

🚗 Navigating the Future of Dealership Compliance🚗 In a recent article for Auto Dealer Today, our CEO, James S. Ganther, dives deep into the evolving landscape of the FTC’s CARS Rule and its implications for dealerships. As the legal battle continues, it's crucial for dealers to stay ahead and align with best practices to avoid potential pitfalls. Key takeaways: The CARS Rule is currently the law, though not enforced. Even if overturned, the FTC can revise and reimplement it. Avoid prohibited practices now to mitigate risks. James provides an in-depth analysis of what dealers should expect and how to prepare, including the potential impacts on advertising, pricing, and customer interactions. Stay informed and proactive. Read the full article to understand the implications and ensure your dealership is ready for any changes. 👉 https://lnkd.in/erBPuNnb 👈 #DealershipCompliance #CARSRule #AutoDealerToday #MosaicComplianceServices #JamesSGanther #AutomotiveIndustry #FTCCompliance #LegalInsights #DealershipBestPractices

#automotivedealerships turn to KPA for Complete Compliance solutions and our expert advice. The CARS rule is paused for now, but KPA + ComplyNet will keep you current on future developments and their implications for your business. #marketleader #rvindustry