FTC Suspends Anti-Scam Protection Rule for Consumers, Citing Ongoing Legal Challenges
The Federal Trade Commission (FTC) has announced the postponement of the effective date for the Combatting Auto Retail Scams (CARS) Rule, originally scheduled to go into effect on July 30, 2024. The decision comes following a legal challenge and petitions to overturn the rule from two industry groups. The FTC's order explains that the petitioners' suggestions have created uncertainty, but notes that the rule does not increase compliance costs for dealers who currently follow the law. The CARS Rule is aimed at addressing persistent and illegal bait-and-switch scams and junk fees in the car buying process. If implemented, the rule is expected to save consumers over $3.4 billion and approximately 72 million hours per year. The FTC's order also states that the petitioners' assertions rest on mischaracterizations of what the rule requires. The Commission further notes that if the court reviewing the rule grants expedited review, a stay of the effective date should not postpone implementation by more than a few months, if at all. The Commission voted 3-0 to approve the issuance of the order. However, the search results do not provide specific information on who submitted the petition to overturn the CARS regulation. The CARS Rule is particularly relevant for consumers shopping for vehicles, as it aims to ensure a fair and transparent car buying process. The FTC's decision to postpone the effective date is a step in the ongoing legal process regarding the rule. It is important to note that this article provides a summary of the current situation based on available information. For more detailed updates and official statements, it is recommended to follow the Federal Trade Commission's official announcements.
Read also:
- International powers, including France, Germany, and the UK, advocate for the reinstatement of sanctions against Iran.
- Companies urged to combat employee resignation crisis, as per findings from the Addeco Group
- Republicans advocate Trump's domestic policy plans in Iowa, though some business owners remain skeptic
- Procedure for Granting the Contract Has Been Instigated by the Commission
