Page 34 - Summer 2024
P. 34
Tom O’Neil
National Director of Compliance for
Brown & Brown Dealer Services
According to their website, the Federal Trade Commission
(FTC) issued an order postponing the effective date of the
Combatting Auto Retail Scams (CARS) rule due to a pending
legal challenge brought by the National Automotive Dealers
Association (NADA) and Texas Auto Dealer Association. 1
The NADA, Texas Auto Dealer Association, and many others have worked together
to advocate for dealerships and other businesses in the auto industry in response to
the postponed CARS Rule.
34 The success of this advocacy has prompted some dealerships to postpone important
activities related to CARS rule preparation, including advertising and compliance
reviews, necessary updates to compliant business practices and critically important
employee training. However, regardless of the fate of the CARS rule, dealerships
should understand the FTC’s intent and the existing means by which they may still
enforce new and established rules.
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