In a major victory for car dealers nationwide, the U.S. Appeals Court recently overturned the FTC’s controversial car-buying rule, a decision celebrated by the National Automobile Dealers Association (NADA). Joining us on today’s episode of Inside Automotive, Paul Metrey, Executive Vice President of Public Policy at NADA, joins us to explain the significance of the ruling, what it means for dealers and consumers, and NADA’s key policy priorities for 2025.
First, Metrey notes the legal win for dealers following the U.S. Appeals Court’s decision to overturn the FTC’s car buying rule, initially proposed in the summer of 2022. In partnership with the Texas Automobile Dealers Association, NADA challenged the rule, which the FTC claimed would protect consumers from unfair practices, including “junk fees.” However, Metrey explains that the rule would have added burdensome new requirements for dealers, including convoluted disclosures and extensive record-keeping obligations.
According to Metrey, one of the biggest concerns was the introduction of multiple new disclosures that would have lengthened the car-buying process. An independent study by the Center for Automotive Research indicated that the rule could have added at least an hour to each transaction, creating delays and increasing consumer costs. Metrey emphasized that the rule’s added time and complexity would have been detrimental rather than beneficial to consumers.
Looking ahead, Metrey outlines NADA’s focus on environmental regulations, specifically the waiver granted to 12 states to enforce stricter emission standards under the California Air Resources Board (CARB) regulations. He argues that these heightened standards are unachievable and that a unified national fuel economy and emission standard would better serve both consumers and car manufacturers.
Overall, Metrey expresses optimism about the current administration’s willingness to address these issues and underscores NADA’s ongoing commitment to fighting for policies that benefit both dealers and their customers.
"An independent study performed by the Center for Automotive Research indicated that, on average, this would add at least an hour of transactional and review time to a transaction." – Paul Metrey.
