Dealers' Associations Ask Courts to Block FTC's Ban On Hidden Fees

While most car dealerships are honest, legitimate businesses, some don’t hold their customers in such high regard, charging more than they should without the right disclosures about what the fees are for. Hidden fees aren’t just annoying and shady, though, they can be very expensive, and last year, a Federal Trade Commission ruling aimed to shut the practice down.


The National Automobile Dealers Association protested the decision, joining the Texas Auto Dealers Association in filing a petition in the Fifth Circuit Court of Appeals, leading to a pause on the FTC's rule.

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FTC Launches “Combating Auto Retail Scams” Rule

The Federal Trade Commission (FTC) has announced the finalization of the new Combating Auto Retail Scams (CARS) rule designed to prevent auto dealers from utilizing bait-and-switch tactics and hidden junk fees. While these are technically illegal already, CARS is supposed to give the FTC more leeway in determining what constitutes fraud and serve as a warning to dealers that may be crossing the line.

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Car Dealers Cheesed Over FTC's Proposed Rule Changes

Federal Trade Commission (FTC) has proposed comprehensive rules changes regarding dealership advertising and how finance and insurance offices are handled. However, dealers, specifically the National Automobile Dealers Association (NADA), aren’t happy with these new ideas and have issued formal challenges to the regulatory scheme.

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FTC Exploring Consumer Repair Rights Expansion

The Federal Trade Commission (FTC) has identified numerous repair restrictions in a new report to Congress. Parts replacement difficulty and parts availability limitations were among the restrictions.

Assisting in expanding repair options available to consumers is within the agency’s power. The Commission works with lawmakers on the state or federal level to provide choices when consumers repairs.

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Cash in Your Chips: Automakers Ask FTC to Seek Appeal After Losing Qualcomm Case

Frequently on the cutting edges of technology, the automotive industry has been slamming chips into vehicles to facilitate communications ever since General Motors launched OnStar back in 1996. This evolved into cars boasting reliable navigation systems and remote vehicle diagnostics until they literally started becoming mobile internet hot spots.

Now the industry wants to further ingrain connectivity by equipping all vehicles with 5G — opening the road for new features and the ability to harvest your personal data more effectively.

This has required deals with tech chip manufacturers like Qualcomm, which requires companies to sign a patent license agreement before actually selling any of its hardware or software. But regulators around the globe worried the practice may be monopolistic, violating antitrust laws. The Federal Trade Commission (FTC) brought a case against the business in 2017. Despite winning that case in 2019, a U.S. appeals court overturned the decision earlier this month, deciding Qualcomm could continue conducting business as usual. Now, tech companies (mainly Qualcomm rivals) and a gaggle of automakers are urging the FTC to seek an appeal following the loss.

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FTC Hunting for Abuse in Auto Lenders' Implementation of Kill Switches

Finance companies have begun using ignition kill switches and tracking devices, which allow them to disable and then easily locate vehicles for repossession. Some of the devices even remind borrowers when they’ve missed a payment. According to PassTime, a company that sells such devices, somewhere between 35 and 70 percent of cars financed on subprime loans have some variant of the hardware installed.

Now the the Federal Trade Commission is looking into whether these automotive finance companies are illegally harassing consumers with poor credit by imposing the hardware onto their vehicles — potentially violating their privacy while also garnering unnecessary intimidation from banks.

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VW Admits Audi Software 'Distorts Emissions' While Also Billing It as a Feature

As U.S. and European authorities gear-up for another round of investigations, Volkswagen confirmed Audi did produce cars equipped with software that can distort emission test results. Although VW was careful not to be too committal in its wording, hinting at it being a handy driver’s assist instead of a defeat device.

This must be a great time to be a corporate lawyer.

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TTAC News Round-up: Heavens Smile as Cursed Minivan Plant Resumes Production

Tranquility returns to North America as FCA’s ill-fated minivan assembly plant prepares itself for a return to active duty.

That, the used car rulebook is getting an update, an autoworkers’ union puts its hand out for government cash, and Porsche shrinks the price-tag and stretches the length of the Panamera … after the break!

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Bark's Bites: Oh, the Games They Play With CPO

If you were to listen to the Experts Of The Internet, you might become convinced that Certified Pre-Owned is the only way to go when buying your next whip (I like to say “whip” because I know it annoys many of you). In this case, the experts aren’t entirely wrong — after all, there’s a lot to like about CPO. Late-model cars in like-new condition at a cost that’s considerably less than new, extended warranties, 1,857-point inspections — it’s all good stuff, right? If you play your hand correctly, you can get an outstanding deal and a car that will inspire confidence.

But CPO is a giant pain-in-the-ass for many dealers. Knowing what we know about the dealership world, is it any wonder that a good number of them game the system? If you’re looking to go CPO, you’ll want to know the tricks they pull, and how they affect you, the consumer.

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Volkswagen to Buy Back or Fix Diesels, Compensate Owners and Environment

Embattled automaker Volkswagen reached a long-awaited settlement deal in principle with regulators this morning in a California courtroom.

Before presiding judge Charles Breyer, Volkswagen agreed to buy back afflicted diesel models from U.S. buyers, while compensating their owners from a newly created fund. The automaker would accept early termination on leased models, and fix some vehicles if requested by owners.

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TTAC News Round-up: Volkswagen Turns To Former FBI Chief, Renault Just 'Improving' Emissions, GM Buys Ridesharing Service

Volkswagen just tabbed a former FBI director to be the highest paid traffic cop in the universe.

That, Renault is only “improving” its emissions, GM’s big bet on ride sharing and the world’s biggest auto supplier says diesel isn’t dead … after the break!

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Feds Investigating General Motors Over 'Certified' Used Cars

General Motors disclosed in its quarterly Securities and Exchange Commission filing Thursday that the Federal Trade Commission is investigating the automaker for selling used cars under recall, the Detroit News is reporting.

According to the automaker, the FTC notified GM that it was investigating “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”

The filing acknowledges the investigation is connected with the 2014 recall of 2.59 million cars with faulty ignition switches that could turn the car off while driving, disabling its airbags. So far, 124 deaths have been linked to the defect.

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Tesla Gains Renewed Support From FTC For Direct Sales Model

In its battles for the right to sell its wares directly to consumers, Tesla has found a valuable ally in the Federal Trade Commission.

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Rental Car Oligopoly Increasing Profitability at Consumers' Expense

2014 has been a good year for the rental car industry. A recovering economy has meant more car rentals and more miles traveled by consumers. Volume alone isn’t responsible for the rental companies’ recent success, though. Each of the big three rental chains has been able to raise prices, thanks to the consolidation of an industry that they now collectively control 98% of.

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Nissan, Ad Agency Settle With FTC Over Hill Climb Dramatization in Frontier Ads

Nissan North America and TBWA Worldwide, Nissan’s ad agency have agreed to a settlement with the Federal Trade Commission over the FTC’s claims that a television commercial for the Nissan Frontier misled consumers about the truck’s ability to climb hills. The 30 second ad, titled “Hill Climb”, portrayed a Frontier pushing a stranded dune buggy up a steep sand dune. In reality, the Frontier wold not be able to perform the stunt in the ad. To shoot the ad, both vehicles were towed up the hill using cables.

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  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
  • Mikey My late wife loved Mustangs ..We alway rented one while travelling . GM blood vetoed me purchasing one . 3 years after retirement bought an 08 rag top, followed by a 15 EB Hard top, In 18 i bought a low low mileage 05 GT rag with a stick.. The car had not been properly stored. That led to rodent issues !! Electrical nightmare. Lots of bucks !! The stick wasn't kind to my aging knees.. The 05 went to a long term dedicated Mustang guy. He loves it .. Today my garage tenant is a sweet 19 Camaro RS rag 6yl Auto. I just might take it out of hibernation this weekend. The Mustang will always hold a place in my heart.. Kudos to Ford for keeping it alive . I refuse to refer to the fake one by that storied name .
  • Ajla On the Mach-E, I still don't like it but my understanding is that it helps allow Ford to continue offering a V8 in the Mustang and F-150. Considering Dodge and Ram jumped off a cliff into 6-cylinder land there's probably some credibility to that story.