FTC Proposes Rule to Ban Junk Fees, Bait-and-Switch Tactics Plaguing Car Buyers
From Modern Dealer: Business Development with Colin Thomas BDC Colin™ by Colin Thomas
December 3, 2023 · 18 min · Season 1 · Episode 2
About this episode
The episode discusses the FTC's proposed rule to ban deceptive practices and junk fees in car sales to protect consumers.
In a bulletin issued by the federal trade commission on June 23, 2022 the FTC Proposes Rule to Ban Junk Fees, Bait-and-Switch Tactics Plaguing Car Buyers As auto prices surge, agency launches rulemaking to protect consumers’ pocketbooks and level the playing field for honest dealers regarding: Ban bait-and-switch claims: The proposal would prohibit dealers from making a number of deceptive advertising claims to lure in prospective car buyers. This deal deception can include the cost of a vehicle or the terms of financing, the cost of any add-on products or services, whether financing terms are for a lease, the availability of any discounts or rebates, the actual availability of the vehicles being advertised, and whether a financing deal has been finalized, among other areas. Once in the door or on the hook, consumers face the fallout of false promises that don't pan out. Ban fraudulent junk fees: The proposal would prohibit dealers from charging consumers junk fees for fraudulent add-on products and services that provide no benefit to the consumer (including “nitrogen filled” tires that contain no more nitrogen than normal air). Ban surprise junk fees: The proposal would prohibit…
Topics covered
- FTC rule
- junk fees
- bait-and-switch tactics
- car buying
- consumer protection
Keywords
- FTC
- car dealers
- advertising claims
- consumer rights
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