Following the Federal Trade Commission's sweeping proposal to crack down on dealership advertising and add-on disclosures, the National Automobile Dealers Association and the National Independent Automobile Dealers Association have both said the proposed regulations were unjustified and will hurt consumers.
The regulations, which were approved in a 4-1 vote by the FTC on June 27, included stipulations dealers disclose an "add-on" list prior to a sale and cannot charge add-ons "that provide no benefit" to the consumer as well as a requirement dealers keep a detailed record of all complaints and add-ons for a period of time. The proposed regulations would be the agency's first rules against dealers since the Dodd-Frank Act of 2010.
Regulation 463.4 (b) stipulates if a dealership charges for an add-on, either directly or indirectly, it must disclose it. The proposed guideline says this add-on list must be "on each website, online service, or mobile application operated by or on behalf of the Dealer, and at each dealership" and the information or a way to obtain the information must be available on all advertisements for the products.