The Federal Trade Commission proposed banning finance and insurance coverage and physical vehicle add-ons “that provide no benefit” and requiring expanded disclosure and consent on such optional products — including a list of prices online.

The agency also is considering cracking down on dealerships’ advertising related to the cost of the vehicle itself.

The commission’s June 27 notice of proposed regulations was approved by a 4-1 vote with Commissioner Christine Wilson dissenting. An accompanying news release repeatedly depicted physical additions and F&I products as “junk fees,” though the four commissioners supporting regulations acknowledged in a separate statement, “Not all add-ons provide no value.”

FTC Chair Lina Khan and Commissioners Noah Phillips, Rebecca Slaughter and Alvaro Bedoya saidthe rule would be their agency’s first regulation since the Dodd-Frank Act of 2010. That law continued and expanded the FTC’s authority over auto dealerships.

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FTC Wants To Crack Down On Dealerships Banning Deceptive Practices And Add Ons

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