Big FTC CARS Rule News, Jim Ganther Tells Us What It Means

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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:

• 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.

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