FTC proposes rule to make car buying easier, less expensive

As auto prices surge, the Federal Trade Commission is proposing a rule to ban junk fees and bait-and-switch advertising tactics that can plague car buyers.

The goal is to make the car-buying process clearer and more competitive and could save people thousands of dollars.

If enacted, this rule would ban dealers from making deceptive advertising claims.

That includes saying a vehicle is in stock online, but when you go in, that car was never there.

It would also ban dealerships from tacking on surprise fees for add-on services.

It would also require dealers to disclose full cost and conditions upfront.

According to the FTC, the average dealership spends an average of $600 on advertising per vehicle, more than half of which goes toward online advertising.

The FTC estimates over 10 years the rule change could save U.S. car buyers about $31 billion.

Before this rule can go into effect, it will first be published for public comment for 60 days.

When that period is up, the commission will review comments to determine next steps.


About the Author:

Ashley Harding joined the Channel 4 news team in March 2013. She reports for and anchors The Morning Show.