Press Releases
09/15/2022
Attorney General Tong Urges FTC to Strengthen Car Rules to Prevent Consumer Harm, Misrepresentations
Automobile issues regularly top consumer complaints for AG offices
[(Hartford, CT) - Attorney General William Tong joined a coalition of 18 attorneys general calling on the Federal Trade Commission to adopt and strengthen guidance on automobile sales.The comment letter supports the FTC’s proposed updates to the
Motor Vehicle Dealers Trade Regulation Rule related to the sale, financing, and
leasing of motor vehicles by motor vehicle dealers, while proposing several
suggestions to further strengthen the rule.
The proposed Rule, published in the Federal Register on July 13,
would provide a critical tool to address misrepresentations and prevent consumer
harm.
“No one likes surprise fees and unexpected add-ons when
purchasing a car. Last year alone, our office received more than 500
car-related complaints. The FTC’s proposed changes are an important step to
ensuring transparency and combatting unfair and deceptive car sale tactics, but
even more can and should be done. I look forward to working alongside the FTC
to support these important efforts,” said Attorney General Tong.
Attorneys general frequently hear from consumers with complaints
over vehicle sales. In 2021, the Connecticut Attorney General’s Office received
564 auto-related complaints.
The FTC’s proposed rule is a necessary step in combatting unfair
and deceptive acts in the vehicle marketplace. It aligns with existing guidance
from industry trade groups, as well as state laws and regulations.
The proposed rule would:
- prohibit motor vehicle dealers
from making certain misrepresentations in the course of selling, leasing,
or arranging financing for motor vehicles.
- require accurate pricing disclosures
in dealers’ advertising and sales discussions.
- require dealers to obtain
consumers’ express, informed consent for certain charges.
- require transparency about add-on
products and their pricing.
- prohibit the sale of any add-on
product or service that confers no benefit to the consumer.
- require dealers to keep records
of advertisements and customer transactions.
While we believe these updates will enhance the ability to protect
consumers from unfair and deceptive practices, we offer the following suggestions
to further strengthen the rule:
- require price disclosures in
writing regardless of the form of the inquiry.
- require that price disclosures
provide complete information on the cost to
purchase or finance the sale of a vehicle.
- require written disclosures and
obtain written consumer consent before the purchase of any optional
add-ons.
- require auto dealers to retain
records on all contracts for the duration of the contract.
- set a time limit for dealers to
pay off the lien on any traded-in vehicle to protect consumers and ensure
a fair marketplace.
- regulate the use of
starter-interrupt devices to encourage safety and transparency.
In their letter, the attorneys general thank the FTC for
addressing a lack of transparency in the current Motor Vehicle Dealers Trade
Regulation Rule. The coalition hopes the final rule will enhance protections
for consumers and ensure a more competitive and equitable marketplace.
Attorney General Tong was joined by the attorneys general of
California, Colorado, Delaware, District of Columbia, Hawaii, Illinois, Iowa,
Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon,
Pennsylvania, Rhode Island, and Washington.
Assistant
Attorney General Rebecca Quinn and Deputy Associate Attorney General Mike Wertheimer,
head of the Consumer Protection section, assisted the Attorney General in this
matter.
- Twitter: @AGWilliamTong
- Facebook: CT Attorney General
Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
860-808-5324 (office)
860-214-0937 (cell)
Consumer Inquiries:
860-808-5318
attorney.general@ct.gov