Complete Compliance for Dealers
FTC CARS Rule Solutions for Dealers
The Federal Trade Commission CARS Rule (known in some circles as the Vehicle Shopping Rule) changes the game for dealership trustworthiness. It’s time to protect your reputation and comply with FTC regulations to stay competitive.
ON-DEMAND WEBINAR
Vehicle Shopping Rule on Trial: KPA Post-Argument Analysis
Join KPA for a comprehensive analysis of the oral arguments in the case challenging the Vehicle Shopping Rule. Our legal experts will delve into the key arguments presented by both sides, the potential outcomes, and the implications for the automotive industry and consumer protection.
RESOURCE HUB
FTC CARS Rule Resource Hub
The CARS Rule is set to bring major changes to dealership advertising, sales, and financing strategies before it takes effect. To help you stay ahead, we’ve put together a comprehensive resource hub with all the essential insights and updates you need to prepare. Explore it now to stay informed and compliant.
Guided Compliance
Follow a 10-Step Journey to FTC CARS Rule Compliance
By following these steps, dealers may significantly reduce their exposure to regulatory risk, ensuring a more secure and compliant operation. Remember, proactive measures today can help prevent costly penalties and protect your dealership’s reputation tomorrow.
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8 of the top 10 dealership groups rely on KPA’s expertise.
3k
Annual advertising, sales, and finance consulting visits
57k
Annual deal jacket audits
600+
Cumulative years of consulting experience
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Assessments and Audits
Navigate the challenges posed by the FTC CARS Rule seamlessly with comprehensive coverage, including audits and assessments.
Website Assessments
Professional and automated website scans to help find and remediate violations of CARS, TILA, Reg M, Reg Z, and more, before vehicle delivery
Deal Jacket Audits
Covering the stringent FTC regulation from documents and disclosures to improper fees and missing forms
Site Assessments
Conducted remotely or onsite and covering market, sales, and finance team policies and associated sales and record keeping practices
award-winning training
FTC CARS Rule compliance training solutions
Access a comprehensive training library to ensure customer-facing personnel and programs are accountable and effective.
Award-winning library
Topics address a wide range of risk areas at your dealership, covering regulations like the Adverse Action Rule, ECOA, Fair Credit Reporting Act, and more.
Mobile-friendly online courses
Deliver high-quality, online training to your teams online or through the mobile application. Track completion rates and quiz scores to know when employees are nearing their expiration date and ensure they are aware of deceptive practices.
Modern Cloud Software
Purpose-built software for dealers
Built to serve the needs of dealerships with comprehensive workforce and workplace compliance solutions.
Full regulatory library
Take advantage of a full library of policy templates, written programs, guides, and forms to help you follow standards and monitor activity to improve accountability.
Consumer complaint management
Take advantage of a full library of policy templates, written programs, guides, and forms to help you follow standards and monitor activity to improve accountability.
Reduce manual tasks with Vera Suite
Identify issues that don’t align with sales and F&I best practices and use KPA’s mobile app to log inspection results in real-time to combat deceptive practices.
All-In-One Safety and Compliance for Dealers
With 30+ years of experience and in-house expertise in every state, KPA is a complete solution that dealerships can count on to maintain a safe workplace, protect their reputation, and reduce costs.
Customer Spotlight
Learn how KPA customers are saving time and money, while building a safer workforce.
Having a structured and reputable compliance partner like KPA takes away all the guesswork.
VP of Finance Operations, LACarGuy
CARS Rule FAQs
The FTC’s CARS Rule, established by the Federal Trade Commission’s rulemaking process, aims to enhance transparency and protect consumers during the car buying experience.
Known in some circles as the Vehicle Shopping Rule, the rule aims to enhance transparency and consumer protection in the auto retail market. The FTC finalized the CARS Rule to add truth and clarity to the purchasing process, ensuring that dealers disclose important information clearly. Specifically, dealers may not misrepresent vehicle pricing or financing terms, and the CARS Rule also prohibits dealers from charging hidden fees.
The new rule requires dealers to get consumers’ express informed consent before adding any add-on products or services to the vehicle purchase. This ensures that consumers are fully aware of their monthly payment obligations, including any potential rebate offers. The rule also prohibits bait-and-switch tactics, which have long plagued the industry and misled buyers. Honest dealers are expected to comply with these regulations to maintain trust and integrity within the marketplace.
The FTC rule mandates that dealers must clearly disclose all associated costs with vehicle sales. This is part of the effort to align with both federal and state laws that protect consumers. The House Appropriations Committee supports this initiative, emphasizing the importance of the cars rule as essential rules of the road for the automotive industry. Overall, the cars rule makes it illegal for dealers to engage in deceptive practices, fostering a fairer marketplace for consumers.
This rule is set to go into effect shortly, though some industry sectors are currently challenging it legally. Nevertheless, the FTC is committed to ensuring that consumers’ buying process is straightforward and devoid of deceptive practices. By requiring dealers to provide clear information, the commission aims to empower consumers and promote a more equitable automotive marketplace.
The CARS Rule was established to enhance transparency and protect consumers during the car buying process. The purpose of the FTC’s CARS is to ensure that auto dealers provide accurate information about financial services related to vehicle purchases. Initiated through a notice of proposed rulemaking, the proposed rule aims to address concerns raised by various stakeholders, including the National Automobile Dealers Association and the Texas Automobile Dealers Association. This rule prohibits deceptive practices and requires dealers to clearly disclose terms and conditions associated with buying or leasing vehicles.
The CARS rule is designed to add truth and clarity in transactions, ultimately providing a benefit to consumers. By mandating clear communication from motor vehicle dealers, the rule will increase consumer confidence and understanding. Furthermore, the rule will save consumers from potential financial pitfalls, ensuring they are fully informed about their options in the realm of financial services and general government regulations.
The CARS Rule, also known as the Combating Auto Retail Scams rule, applies primarily to car dealers engaged in the sale of vehicles. The rule applies to “any self-propelled vehicle designed for transporting persons or property on a public street, highway or road.”
Right now, this includes auto dealers and excludes things like boats, motorcycles, RVs, and golf carts. Beyond car dealers, there’s a gray area around medium—or heavy-duty trucks, tractors, or trailers.
Violations of the rule constitute unfair and deceptive acts and practices under Section 5 of the FTC ACT, and the FTC can impose penalties of $50,120 per violation.
Recommended Resources
Here are some resources to help you build a better safety program.
FTC CARS Resource Hub
The upcoming CARS Rule, effective July 30, 2024, will greatly influence dealership practices. Access our comprehensive resource hub for all the necessary information.
Basics of the FTC’s New CARS Rule
In this on-demand webinar, we dig into the CARS Rule details you need to know and the changes you need to make.
