Why the new FTC provisions would hurt dealers and the car buying experience – Brett Scott, NIADA

The National Independent Automobile Dealers Association (NIADA) says that a recently proposed rule by the Federal Trade Commission “would place extensive restrictions on the sale, financing, and leasing of motor vehicles.” Today on Inside Automotive, we’re pleased to welcome Brett Scott, Vice President of Government Affairs for the National Independent Automobile Dealers Association, to share the concern they’re hearing from dealers and what action the association plans to take.

When Scott came into his role as Vice President of Government Affairs last year, one of his top priorities was to ensure that NIADA members had the opportunity to get a seat at the table with Washington’s regulatory heavy-hitters. Since last January, the NIADA has held multiple successful meetings with Federal regulators.

One of the most significant problems Scott sees with the proposed restrictions is their vagueness of scope. In order to be an NIADA member, dealers must already follow strict guidelines regarding vehicle purchasing transparency and online car buying. According to Scott, these rules would “add redundancy” and potentially make the car process less efficient.

The proposal aims to effectively ban the use of bait-and-switch claims, fraudulent or surprise junk fees (including gap insurance,) and would require the full upfront disclosure of cost and conditions. The new rules would create three times as much paperwork, Scott says.

Along with other automobile associations, the NIADA and its members will submit comments to FTC regarding this matter. If you would like to submit a comment, visit the Federal Register here. Other ways you can make your voice heard are by getting involved with your state association or the National Automobile Dealers Association.