The Federal Trade Commission (FTC) has halted the effective date of its new rule aimed at protecting consumers from illicit practices such as junk fees and bait-and-switch, a common tactic when purchasing vehicles. This decision comes in response to legal challenges from various auto groups, prominently led by the National Automobile Dealers Association (NADA).
In their petition to the U.S. Court of Appeals for the Fifth Circuit Court, the NADA has urged for the voiding or modification of the FTC’s Combating Auto Retail Scams (CARS) rule, previously set to commence on July 30. The association argues that the agency acted arbitrarily and capriciously in creating the rule. The legal challenge has momentarily halted the enforcement of the rule, permitting for an evaluation of the NADA’s claims.
Link To Further Details: NationalLawJournal