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Federal Trade Commission (FTC) FTC Act Automotive Industry

Ballard Spahr LLP

Fifth Circuit Court of Appeals strikes down FTC CARS Rule

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The Fifth Circuit Court of Appeals has struck down the FTC’s controversial CARS Rule, saying that the commission violated its own procedural rules by failing to issue an Advance Notice of Proposed Rulemaking (“ANPRM”) before...more

Venable LLP

The Fifth Circuit Slams the Brakes and Vacates FTC CARS Rule

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This week, the U.S. Court of Appeals for the Fifth Circuit vacated the Federal Trade Commission’s (FTC) Combatting Auto Retail Scams (CARS) rule....more

Seyfarth Shaw LLP

5th Circuit Vacates FTC New Car Dealer Rule

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On January 27, 2025, the Fifth Circuit handed new car dealers a significant win by invalidating the Combating Auto Retail Scams (CARS) Trade Regulation Rule issued by the Federal Trade Commission (FTC) in December 2023. In a...more

Troutman Pepper Locke

Fifth Circuit Vacates FTC’s CARS Rule

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Yesterday, the U.S. Court of Appeals for the Fifth Circuit issued a significant opinion vacating the Federal Trade Commission’s (FTC) Combating Auto Retail Scams Trade Regulation Rule (CARS Rule). The decision came in...more

Seyfarth Shaw LLP

FTC Posts $20 Million Settlement With Dealer Group For Alleged Deceptive Practices - Seyfarth's Future of Automotive Series

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On Thursday, December 19, 2024, the Federal Trade Commission (FTC) and Illinois Attorney General announced a massive $20 million settlement with Leader Automotive Group, the operator of 10 dealerships in and around...more

Seyfarth Shaw LLP

FTC Report On Product Support For “Smart” Devices Suggests Future Enforcement Push - Seyfarth's Future of Automotive Series

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On Tuesday, November 26, 2024, the Federal Trade Commission (“FTC”) released a staff report examining the duration of software support commitments by manufacturers of 184 connected devices, ranging from “smart” phones to...more

Fox Rothschild LLP

Federal Court Will Hear Auto Dealers Challenge to New FTC Regulations

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On Oct. 7, the 5th Circuit Court of Appeals will hear arguments in a case that could significantly reshape how auto dealerships operate. The National Automobile Dealers Association is arguing that the Federal Trade...more

Seyfarth Shaw LLP

Fifth Circuit Set to Weigh Challenge to FTC’s CARS Rule - Seyfarth's Future of Automotive Series

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The administrative challenge brought by the National Automobile Dealers Association (NADA) and another trade association against the Combating Auto Retail Scams (“CARS”) Trade Regulation Rule, issued last year by the Federal...more

Seyfarth Shaw LLP

FTC Continues Aggressive Enforcement Actions To Deter Deceptive Pricing Practices By Car Dealers - Seyfarth's Future of Automotive...

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On Thursday, August 15, 2024, the Federal Trade Commission (FTC) and Arizona Attorney General announced a $2.6 million settlement to resolve claims that Coulter Motor Company used deceptive online advertising to lure...more

Troutman Pepper Locke

FTC and Arizona AG Reach $2.6 Million Settlement with Motor Vehicle Dealer Over Alleged Deceptive and Discriminatory Sales and...

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Last week, the Federal Trade Commission (FTC) and the State of Arizona announced a joint action against Coulter Motor Company, an Arizona-based motor vehicle dealership, and its former general manager, for allegedly engaging...more

Ballard Spahr LLP

Vehicle Services Company CarShield Settles Complaint with FTC

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CarShield, a company that sells vehicle service contracts (VSCs), will pay $10 million to settle FTC allegations that its advertisements and telemarketing pitches deceived consumers, the agency announced on July 31....more

Ballard Spahr LLP

Vroom, FTC Agree to $1 Million Settlement over Car Sales Misrepresentation

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Vroom, the former used car sales website which halted vehicle sales in January 2024, has agreed to a proposed settlement with the FTC over allegations the company misrepresented that it had examined all vehicles before...more

Venable LLP

Accelerating Privacy Scrutiny: Key Developments for the Auto Industry

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Recent U.S. developments indicate a growing focus on regulating and investigating the data privacy practices of companies in the automotive sector. The Federal Trade Commission (FTC) recently highlighted in a blog post its...more

Ballard Spahr LLP

FTC files opposition to petition challenging CARS Rule in the 5th Circuit

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On May 14, 2024, the Federal Trade Commission’s (“FTC”) filed its brief in opposition to Petitioners’ Brief in the legal challenge to the Combating Auto Retail Scams Rule (“CARS Rule”). The petitioners are the National...more

Orrick, Herrington & Sutcliffe LLP

FTC, Connecticut file complaint against auto dealer for deceptive and unfair practices

On January 4, the FTC and the State of Connecticut issued a joint complaint against an auto dealer and its owner for alleged violations of the FTC Act and the Connecticut Unfair Trade Practices Act. ...more

Ballard Spahr LLP

FTC issues final CARS Rule setting new requirements on vehicle sales

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On December 12, 2024, the Federal Trade Commission (“FTC”) announced its Combating Auto Retail Scams Rule, otherwise known as the “CARS Rule,” setting new requirements on the sale, financing, and leasing of vehicles by motor...more

Wiley Rein LLP

Wiley Consumer Protection Download (December 18, 2023)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Sheppard Mullin Richter & Hampton LLP

FTC and Wisconsin DOJ Agree to $1.1M Settlement with Auto Dealers over Unlawful Junk Fees and Discrimination Against American...

On October 24, the FTC and the Wisconsin Department of Justice (DOJ) announced a $1.1 million settlement with a group of Wisconsin auto dealers for allegedly charging customers illegal junk fees and unlawfully discriminating...more

Ballard Spahr LLP

FTC and Wisconsin AG enter into settlements with auto dealerships for alleged discriminatory financing practices deceptive add-on...

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The Federal Trade Commission and Wisconsin Attorney General have entered into settlements with a group of auto dealerships, their current and former corporate owners, and their general manager for allegedly engaging in...more

Spilman Thomas & Battle, PLLC

Are Automakers Making Sufficient Efforts to Protect Customer Data?

With the ever-expanding Internet of Things, data privacy is a growing concern in today’s digital age. The automotive industry is no exception. The National Highway Traffic Safety Administration (“NHTSA”) has broad regulatory...more

Sheppard Mullin Richter & Hampton LLP

FTC Order: Auto Marketing Company and Owner Banned From Industry for Misleading Consumers

On January 28, the FTC announced that it banned an automotive marketing company and its owner from the auto industry for the next twenty years for allegedly engaging in unfair and deceptive practices in violation of the FTC...more

WilmerHale

FTC and NHTSA Navigate Privacy and Security Issues at “Connected Cars” Workshop

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The majority of new cars today come with a variety of so-called “connected” features, such as the ability to communicate with one another, Internet-connected features and video content, and even the ability to drive...more

Fox Rothschild LLP

FTC Eyeing Privacy And Security Of Connected Cars

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Acting Federal Trade Commission (FTC) Chairman Maureen K. Ohlhausen made it clear that she expects the FTC’s enforcement role in protecting privacy and security to encompass automated and connected vehicles. In her opening...more

Ballard Spahr LLP

FTC Consent Order Creates Uncertainty for Advertising of Credit, Lease Offers

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A recent Federal Trade Commission (FTC) consent order with two Ohio auto dealers creates uncertainty not only for auto dealers, but also for all other businesses advertising credit or lease offers. The order settled...more

Proskauer on Privacy

Baby You Can Drive My Car

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Consumers can expect many benefits from their cars’ increased data collection programs, running the gamut from simple location services like GPS and OnStar to “networked” cars that can communicate their location with other...more

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