The Federal Trade Commission (FTC) has finalized its new rule designed to combat nefarious automobile dealerships using shady tactics when selling cars. Called the Combating Auto Retail Scams (CARS) Rule, it will eliminate junk fees that are sometimes added to purchase agreements and present customers with a clearer up-front picture of what the final price will be. In theory, anyway.
According to the FTC, the rule will prohibit dealers from misrepresenting pricing on vehicles, such as advertising a price for a specific trim that may not be available for purchase. Dealers will be required to inform customers of add-ons that aren’t required, such as extended warranties. Toyota was recently fined $60 million for a plethora of infractions through Toyota Motor Credit, including allegedly telling customers some optional add-ons were required.
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