The National Association of Independent Automobile Dealers said on Friday that Federal Trade Commission proposed new rules on advertising, financing and insurance would hurt consumers and make vehicles more expensive.
The trade group estimated compliance would require at least $1.4 billion over the next 10 years, “pushing up prices for consumers and making the car-buying process longer and more difficult.” He said many of the issues the FTC is seeking to address fall under existing regulations.
“Independent auto dealers are small business owners, and the FTC’s proposed rule has the potential to negatively impact our members’ ability to operate their businesses,” said NIADA CEO Robert Voltmann. in a press release.
“We look forward to working with the commissioners and their staff to ensure that the voices of NIADA members are heard.”
NIADA, which has 16,000 dealers as members, represents the country’s licensed used vehicle dealers.
The new proposals target automated retail behaviors such as bait and switch advertising and F&I products being smuggled into transactions without consumer consent.
The FTC said in its June 27 rulemaking notice that it had received more than 100,000 complaints each of the past three years regarding the sale, maintenance, rental, leasing, warranties and vehicle transactions, and she said complaints about car deals are “consistently in the top 10 complaint categories tracked by the agency.”