The FTC, also known as the Federal Trade Commission, recently made a statement to alert Americans of a new rule that is targeting auto dealership scams and false advertising. This new rule focuses on a wide range of deceptive techniques used by dealerships, such as misrepresenting vehicle warranties, artificially inflating sticker prices, and advertising misleading promotions. The new rule prohibits dealerships from engaging in such practices and requires them to clearly disclose all fees and warranty terms.
In a press release, the FTC stated, “The FTC’s new rule makes it unlawful for car dealers to engage in deceptive practices when advertising or selling vehicles. It requires dealers to disclose fees, such as doc and title fees, in all advertisements and prohibits them from misrepresenting terms and conditions of any warranty. In addition, dealers must provide a detailed list of all finance and leasing terms for any vehicles they sell.”
The FTC is focusing its attention on the automotive industry in order to protect consumers from being misled and taken advantage of. It also hopes to clamp down on companies that are attempting to make money off of unsuspecting buyers. According to the FTC’s statement, the commission is particularly concerned about the prevalence of deceptive practices in the online car-buying industry.
The new rule comes as part of the FTC’s ongoing effort to protect consumers from deceptive auto dealer practices. This new rule follows recent actions taken by the commission to crack down on companies that fail to disclose extra fees associated with their vehicles, and those that falsely advertise discounts and other promotions.
The FTC’s new rule is a much needed step in the right direction, and will go a long way toward preventing unethical practices in the auto industry. Consumers should always do their research and be aware of the details before making a purchase.