23 Jun, 2024

FTC reveals new rule targeting auto dealership scams that hurt shoppers

The Federal Trade Commission announced a new rule Tuesday intended to stop auto dealers from using hidden fees and bait-and-switch price tactics on buyers.

The agency says such fees and tactics cost people in the US $3.4 billion a year and add 72 million hours to their time spent shopping for vehicles.

The FTC calls the new regulation the Combating Auto Retail Scams Rule.

Read more on this story at NBCNews.com and watch “NBC Nightly News with Lester Holt” tonight at 6:30 pm ET/5:30 pm CT.

The agency says the rule bans misrepresentations about price, cost and other key information. It also requires dealers to provide the actual price consumers have to pay for vehicles, to disclose that additional items such as extended warranties aren’t mandatory and to state the full monthly payment consumers are accepting upfront.

Stacy Lupo of Winter Haven, Florida, said she and her son were victimized by those kinds of sales tactics when she bought a car for him at a Toyota dealership in 2021. They were offered an extended warranty and turned it down, but Lupo was concerned about the way the financing manager behaved afterwards.

She said she later reviewed the lease paperwork and

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