---
title: Dealer Association Opposes FTC's New Bait & Switch Rules
description: The National Automobile Dealers Association is responding to a new Federal Trade Commission rule that fights two scams in vehicle shopping.
---

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# [Dealer Association Opposes FTC's New Bait & Switch Rules](https://www.carpro.com/blog/dealer-association-opposes-ftcs-new-bait-switch-rules)

 Written by [CarPro](https://www.carpro.com/blog/author/carpro) | Jan 3, 2024 10:44:06 PM

The National Automobile Dealers Association (NADA) is responding to a new rule recently finalized by the Federal Trade Commission. The [CARS rule, ](https://www.ftc.gov/news-events/news/press-releases/2023/12/ftc-announces-cars-rule-fight-scams-vehicle-shopping)which goes into effect July 30, 2024, is designed to fight vehicle scams that consumers face when shopping for a car. It specifically targets bait-and-switch tactics and hidden junk fees.  (For more CARS rule specifics, [check out our separate post here.)](https://www.carpro.com/blog/ftc-finalizes-new-rules-to-stop-bait-and-switch-car-dealers)

In a [press release](https://www.nada.org/nada/press-releases/nada-releases-statement-ftcs-vehicle-shopping-rule) released following the announcement,<https://www.nada.org/nada/press-releases/nada-releases-statement-ftcs-vehicle-shopping-rule>NADA stated:

*TYSONS, Va. (Dec. 12, 2023)— Today, the National Automobile Dealers Association (NADA) released the following statement by its president and CEO Mike Stanton, on the Federal Trade Commission’s (FTC) issuance of its vehicle shopping rule:*  
* *  
*“This regulation is heavy-handed bureaucratic overreach and redundancy at its worst, that will needlessly lengthen the car sales process by forcing new layers of disclosures and complexity into the transaction. The FTC made up data to support its claims, then rejected calls to slow down the process and test the effectiveness of its proposal with real consumers. We are exploring all options on how to keep this ill-conceived rule from taking effect.” *  
* *  
***Background**: In June of 2022, the FTC proposed a massive new rule that would dramatically impact the automotive sales process by requiring new disclosures and paperwork to combat activity that is already illegal. NADA filed extensive comments in response to the proposal. The FTC issued its final rule today.*

Additional resources:

- [Center for Automotive Research (CAR) Study](https://www.cargroup.org/wp-content/uploads/2023/06/CAR-FTC-Vehicle-Shopping-Rule-Press-Release-June-2023.pdf) showing the proposed regulation would add $38 billion in new costs.
- [Explainer video](https://www.youtube.com/watch?v=ZsuNWroNtts) on how the Vehicle Shopping Rule would work in the showroom.
- [Extensive NADA comments](https://www.nada.org/media/6325/download?inline) pushing back against the regulations.
- “[Car Shopping Ain’t Broke – So the FTC Will Fix It](https://www.wsj.com/articles/car-shopping-aint-broke-so-the-ftc-will-fix-it-lina-khan-auto-sales-dealership-consumer-driver-5ee75129)” – Wall Street Journal analysis of the rule.

#### [Read the NADA press release here.](https://www.nada.org/nada/press-releases/nada-releases-statement-ftcs-vehicle-shopping-rule) 

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Photo Credit: docstockmedia/Shutterstock.com.

 

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