Reps. Kelly Armstrong (R-N.D.) recently introduced the “FTC REDO Act” (H.R. 7101) in the U.S. House of Representatives. The bill would nullify the Federal Trade Commission’s (FTC) Vehicle Shopping Rule and require the agency to follow basic regulatory safeguards it failed to follow should the agency choose to redo the rule. A companion bill (S. 3014) was introduced in the Senate by Sens. Jerry Moran (R-Kan.) and Joe Manchin (D-W.V.) last October.
The is also NADA supporting a provision in a House appropriations bill (H.R. 4664) that would deny funding to the FTC to implement or enforce the rule this fiscal year. This bill could be considered in the next few weeks. Concurrently, the NADA and the Texas Automobile Dealers Association are challenging the rule in court. On Jan. 18, the FTC issued an order stating that “it is in the interests of justice to stay the effective date of the [Vehicle Shopping] Rule to allow for judicial review.” While the FTC’s retreat is welcome news for dealers and their customers, the Vehicle Shopping Rule remains the law.
What’s next: Dealers should urge their representatives in Congress to cosponsor the “FTC REDO Act” to stop the Vehicle Shopping Rule, which will add massive amounts of time, complexity, paperwork and costs to the car buying process.
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