This bill would rescind a Federal Trade Commission rule issued in January 2024 aimed at combating fraudulent practices in auto dealerships and prevents the FTC from creating similar rules in the future without meeting strict new requirements. Before proposing any new automotive retail regulations, the FTC must conduct a statistically valid national study on unfair practices, perform consumer testing to ensure new rules help rather than harm legitimate business, and complete a detailed economic analysis comparing the proposed rule to less burdensome alternatives. All research must be peer-reviewed, publicly commented on for at least 30 days each, and submitted to Congress before the agency can move forward with a proposed rule. Any automotive retail rule that is finalized must be open for public comment for at least 120 days and must apply equally to franchised dealerships, independent dealers, and direct sellers. The bill targets concerns that FTC regulations could impose excessive burdens on car dealers and consumers through new disclosure requirements and paperwork without sufficient evidence that such rules address widespread fraud.
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