New FTC Proposal

[RunR4Life65]

The FTC is proposing changes to how dealers market and sale new and used vehicles. We may see the end of ADMs...fingers crossed!

FTC cracks down on deceptive practices

 

[Ivy1Le]

I wouldn't hold my breath. I didn't see anything that says they would make lease companies discontinue their new practice of "you must personally buy the car, ground the car, or sell it to a same make dealership" .. only that they would "make sure leasees' rights were protected"

It also says no add-ons that don't add value. 100% of dealerships will argue that the ceramic coating they charge $3500 for, but pay a cost of $50 cause they buy cheap product and get unskilled labor to apply it, adds value. If they really want to make change they need to set hard limits not make open ended rules

 

[RunR4Life65]

This part right here, "The rule would require accurate pricing disclosures in dealers’ advertising and sales discussions, require dealers to obtain consumers’ informed consent for charges, prohibit the sale of any add-on product or service that confers no benefit to the consumer..."

Without a consumers' consent, they wouldn't be allowed to charge you. So, it's in the best interest of every buyer to read the fine print within the fine print. And to infer ceramic coating is a "benefit" to a customer is subjective.

I would hope in further discussions and examination, they'll address those cracks dealers may try to slip through. Lastly, the proposed rule is open to public comment...now is a chance for you to make sure they address what you've mentioned above.

 

[RunR4Life65]

This part right here, "The rule would require accurate pricing disclosures in dealers’ advertising and sales discussions, require dealers to obtain consumers’ informed consent for charges, prohibit the sale of any add-on product or service that confers no benefit to the consumer..."

Without a consumers' consent, they wouldn't be allowed to charge you. So, it's in the best interest of every buyer to read the fine print within the fine print. And to infer ceramic coating is a "benefit" to a customer is subjective.

I would hope in further discussions and examination, they'll address those cracks dealers may try to slip through. Lastly, the proposed rule is open to public comment...now is a chance for you to make sure they address what you've mentioned above.

FTC Statement

 

[Ivy1Le]

This part right here, "The rule would require accurate pricing disclosures in dealers’ advertising and sales discussions, require dealers to obtain consumers’ informed consent for charges, prohibit the sale of any add-on product or service that confers no benefit to the consumer..."

Without a consumers' consent, they wouldn't be allowed to charge you. So, it's in the best interest of every buyer to read the fine print within the fine print. And to infer ceramic coating is a "benefit" to a customer is subjective.

I would hope in further discussions and examination, they'll address those cracks dealers may try to slip through. Lastly, the proposed rule is open to public comment...now is a chance for you to make sure they address what you've mentioned above.

I'm not seeing how any of that is different than how things currently are. Dealer puts a 4BW up for sale at $52,000 and puts in the fine print "price may change at any time" .. is it deceptive? Absolutely. Are they going to get fined if they claim it was a mistake and it should have been $82,000... probably not.

Dealers need "consent" to do add-ons right now. That consent is you signing the contract. If you sign saying you'll pay $500 for mud flaps then that's what you choose to do. If you say no, they move on to the next person who will pay.

That FTC statement is about as generic as it gets.

 

[phlip00ws6]

I'm not seeing how any of that is different than how things currently are. Dealer puts a 4BW up for sale at $52,000 and puts in the fine print "price may change at any time" .. is it deceptive? Absolutely. Are they going to get fined if they claim it was a mistake and it should have been $82,000... probably not.

Dealers need "consent" to do add-ons right now. That consent is you signing the contract. If you sign saying you'll pay $500 for mud flaps then that's what you choose to do. If you say no, they move on to the next person who will pay.

That FTC statement is about as generic as it gets.

Sad but true.

 

[RunR4Life65]

Attached is the proposed rule in its entirety. I didn't read it all, but I would pay close attention to section 463...starting at page 113. Talks about the specifics of what dealership can and can't do. I suspect if a dealer adds language like, "price may change at any time," the proposed rule would kick in and require the dealer to inform said customer of that change immediately; not at delivery. I believe I read or heard language to that effect elsewhere...kinda like a grandfather clause if you will. But again, not sure where I read or heard it.

I believe the intent of this rule change is to specifically address concerns like yours; discouraging/preventing dealerships from pulling the "flim-flam" on customers. I'm actually drafting up an email to the FTC to voice my concerns. Better to voice my concerns directly to them than to this forum...better chance of making a difference. ;-)

Motor Vehicle Dealers Trade Regulation Rule