Court throws out car-buying transparency rule: What consumers should know
Published On Feb 10, 2025, 9:42 AM
A federal appellate court has vacated the CARS rule, aimed at enhancing transparency in car buying and protecting consumers from deceptive practices. The Fifth Circuit ruled that the FTC failed to follow necessary procedures before implementing the rule, which was expected to save consumers $3.4 billion annually and significantly reduce car buying time. Industry groups opposed the rule, arguing it would complicate and prolong the purchasing process instead. The FTC must now restart its process if it wishes to reintroduce regulations.
Stock Forecasts
CAR
Neutral
The ruling against the CARS rule may bring short-term stability to car dealership operations, as they avoid increased regulation and the associated costs. However, this may undermine consumer trust and market competitiveness in the long-term, as deceptive practices remain unchecked. The car market could see fluctuations based on consumer sentiment towards dealerships. Investors in automotive stocks should watch for regulatory developments and consumer trust metrics.
Related News
Mechanic shortage persists as workers age out of profession
Dec 11, 2024, 8:57 AM
There is a growing shortage of auto mechanics in the industry as workers age out. Certain issues like stigma and finding replacement workers are some challenges.
Help! Budget Charged Us $450 to Clean Our Rental Car. Can They Do That?
Oct 29, 2024, 11:30 AM
Sure, there were footprints and some dirt, but days after a family from Ireland returned a car to Kennedy Airport, they were hit with the maximum cleaning fee.