Published: September 2022

FTC urged to strengthen protections for consumers who buy, finance or lease motor vehicles through dealers

The Federal Trade Commission has proposed a rule to ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience. More than 100 advocacy organizations signed on to a letter to the agency applauding its efforts and urging it to strengthen the rule to incentivize fairness, encourage competition, address additional unfair and deceptive dealer practices, and give consumers meaningful relief when they have been defrauded.

Cars are essential for most U.S. households, yet, because of misrepresentations and unfair or deceptive practices, many consumers are paying far more for vehicles than they should. The Federal Trade Commission (FTC) has proposed a rule to ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience. Consumer Action and more than 100 other advocacy organizations sent a letter to the agency applauding its efforts and urging it to strengthen the rule to incentivize fairness, encourage competition, address additional unfair and deceptive dealer practices, and give consumers meaningful relief when they have been defrauded. Advocates asked the FTC to, among other things, make the true cost of add-ons transparent and give consumers 30 days to request a refund for add-ons they’ve purchased; require a simplified, uniform, comprehensive and legally enforceable “Offering Price” by dealers; extend the period for which dealers must retain transactions records to a minimum of seven years; prohibit “yo-yo sales” (coercing the buyer into a new, more costly, financing contract after the buyer has left the dealership); and require translation of essential disclosures for LEP buyers.

Lead Organization

Consumer Federation of America, National Association of Consumer Advocates and National Consumer Law Center

More Information

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