Proposed FTC ‘junk fee’ rule garners nearly 1,700 comments | Auto Finance News Proposed FTC ‘junk fee’ rule garners nearly 1,700 comments | Auto Finance News
Auto Finance News

No products in the cart.

Subscribe
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • EVs
    • Exec of the Year
    • Innovation & Technology
    • Powersports
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Auto Finance Summit
    • Powersports Finance Summit
    • Equipment Finance Connect
  • EXCELLENCE
    • Best Practices
    • Columns
      • Strategy Upshift: Georg Bauer
      • Under The Hood: Marcie Belles
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Data
  • Magazine
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Podcast
AFN PLUS
Log In
No Result
View All Result
Auto Finance News
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • EVs
    • Exec of the Year
    • Innovation & Technology
    • Powersports
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Auto Finance Summit
    • Powersports Finance Summit
    • Equipment Finance Connect
  • EXCELLENCE
    • Best Practices
    • Columns
      • Strategy Upshift: Georg Bauer
      • Under The Hood: Marcie Belles
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Data
  • Magazine
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Podcast
AFN PLUS
Log In
No Result
View All Result
Auto Finance News
No Result
View All Result

Proposed FTC ‘junk fee’ rule garners nearly 1,700 comments

The proposed rule received mixed opinions from advocacy groups

Riley Wolfbauer by Riley Wolfbauer
August 15, 2022
in Archives, Compliance & Regulation
Reading Time: 4 mins read
0

The Federal Trade Commission (FTC) has received 1,678 consumer responses as of Monday afternoon to its proposed rule to ban “junk fees and bait-and-switch advertising tactics,” with many consumers applauding the plan while some dealer advocacy groups are requesting more time to submit feedback.  

The FTC proposed a rule at the end of June to ban dealerships from making “deceptive” claims regarding vehicle cost, financing terms, discount availability, cost of add-on products, vehicle availability and whether a finance deal is finalized.  

The proposed rule aims to bar dealers from charging unnecessary fees for add-on products and services that provide no benefit to the consumer and prohibit dealers from adding surprise fees without the clear, written consent from the consumer, according to an FTC release. Dealers also must disclose the price of the vehicle with and without add-on products. 

Consumers and advocacy groups began commenting through the federal government’s rulemaking application that acts as a central hub for the public to submit comments on regulations for the proposed rule starting July 13, and the 60-day window to respond closes Sept. 12. 

© Can Stock Photo / welcomia

Car-shopping process ‘not transparent’ 

A large portion of consumers who commented stated the proposed rule is long overdue and that customers need to be protected from deceptive dealer practices, with many saying the car-shopping process is not transparent, according to an Auto Finance News analysis of the comments. 

Many consumers reported difficulty finding dealership vehicle prices that matched dealer website prices, and some consumers said they were under the impression that they did not have the option to purchase a vehicle without add-ons.  

Some dealers are also in support of the proposed rule. For example, the owners of an independent auto dealership in Gainesville, Fla., voiced support of the proposed rule in a submission on the site due to “deceptive” dealership advertising and stated dealers will often not disclose full prices of add-ons until the consumer is on the lot. 

“Dealerships will add in extended service contracts — wheel or rust protection or paint protection — without telling the customer. They will also add a ‘power pack’ or a ‘bonus pack,’ which would include items such as pinstripes, wheel locks and mud flaps,” the dealership wrote in the submission. “These items will show on an addendum window sticker and may cost the customer thousands of dollars for products that should cost a couple hundred [dollars]. The dealership will refuse to take off any of these add-ons.”  

Extension requests 

Meanwhile, dealer and consumer advocacy groups have mixed opinions on the time allowed for public comment related to the proposed rule.  

Dealer groups have requested the time be lengthened: The National RV Dealers Association (RVDA), National Automobile Dealers Association (NADA), American International Automobile Dealers Association (AIADA), National Independent Automobile Dealers Association (NIADA), National Association of Minority Automobile Dealers (NAMAD), American Property Casualty Insurance Association and American Financial Services Association (AFSA) filed requests to extend the 60-day response period by a minimum of 120 days to allow the associations to gather more input from its dealer members, according to several letters from the associations to the FTC.  

Consumer groups, however, oppose an extension: The Consumer Federation of America, Americans for Financial Reform Education Fund, Center for Responsible Lending, Consumers for Auto Reliability and Safety, Consumer Reports, the National Association of Consumer Advocates, National Consumer Law Center and the U.S. Public Interest Research Group filed a joint response in opposition of all time extension requests, citing the current deadline provides enough time to submit a response. The groups under the opposition have yet to submit comments on the proposed rule but plan to by the Sept. 12 deadline, according to the group’s’ letter to the FTC.  

Auto Finance Summit, the premier industry event for auto lending and leasing, returns October 26-28 at the Wynn Las Vegas. To learn more about the 2022 event and register, visit www.AutoFinanceSummit.com.  

Tags: ancillary productscompliancedealershipsFederal Trade CommissionPremium
Previous Post

DriveItAway launches Ford plug-in hybrid subscription  

Next Post

Listen: Weekly Wrap takes on tech moves in auto finance

Related Posts

© Can Stock Photo / actionsports
Compliance & Regulation

Massachusetts exempts auto loans from negative equity license requirement 

February 2, 2023
© Can Stock Photo / logoboom
Compliance & Regulation

Stricter GAP legislation coming to 4 states

January 30, 2023
Photographer: Gabby Jones/Bloomberg
Archives

Ally auto originations fall 16% amid low ‘risk appetite’ 

January 20, 2023
Next Post
© Can Stock Photo / DamienGeso

Listen: Weekly Wrap takes on tech moves in auto finance

STAY INFORMED WITH OUR NEWS ALERTS

COLUMNS

Under the Hood: Auto fintech investments slump in 2022

January 24, 2023
© Can Stock Photo / welcomia

Under the Hood: EV adoption threatens residual values

December 20, 2022

INNOVATION & TECHNOLOGY

© 2019 Bloomberg Finance LP

Capital One doubles down on digital with Navigator Platform

February 3, 2023
via Santander Consumer USA website

SCUSA, AutoFi prep national rollout of direct-to-consumer marketplace

February 1, 2023

RISK MANAGEMENT

Chicago Fed’s Lavelle joins Equipment Finance Connect speaker faculty

February 6, 2023
A logo outside a Renault SA showroom in Paris, France, on Wednesday, April 21, 2021. Renault will eventually recover though it still has a few more tough months to get through, Chief Executive Officer Luca de Meo told French weekly newspaper Le Journal Du Dimanche in an interview. Photographer: Nathan Laine/Bloomberg

Carlos Ghosn’s carmaking dreams disappear with Renault-Nissan revamp

February 6, 2023

SPONSORED

© Can Stock Photo / Ajlber

Q&A with CCC Intelligent Solutions VP of Lender Services Rick Evans

December 7, 2022

Your SaaS, Covered: Risk Decisioning through Economic Uncertainty

June 8, 2022
Drive a better consumer experience in auto financing with instant decisioning

Drive a better consumer experience in auto financing with instant decisioning

May 9, 2022

About

ABOUT US

PRIVACY TERMS

ADA COMPLIANCE

CODE OF JOURNALISM ETHICS

Manage Cookie Consent

Contact Us

ADVERTISE

HELP CENTER

Follow Us

twitter linkedin podcast
© 2023 Royal Media
No Result
View All Result
  • Home
  • News
    • All News
    • Capital & Funding
    • Compliance & Regs
    • EVs
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Powersports
    • Risk Management
    • Sales & Marketing
  • Events
    • Auto Finance Summit East
    • Auto Finance Summit
    • Powersports Finance Summit
    • Equipment Finance Connect
  • Excellence
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest Issue
    • Features
    • New Tracks
    • Car Culture
    • Staffing Shuffles
    • Under The Hood
    • Spotlight
    • Issue Archive
  • Podcast
  • Data
  • +PLUS
  • SUBSCRIBE
  • Log In / Account

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Powered By MemberPress WooCommerce Plus Integration
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
CookieConsentPolicy1 yearUsed to apply end-user cookie consent preferences set by our client-side utility.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
LSKey-c$CookieConsentPolicy1 yearUsed to apply end-user cookie consent preferences set by our client-side utility.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
__cf_bm30 minutesThis cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
__Host-GAPS2 yearsThis cookie allows the website to identify a user and provide enhanced functionality and personalisation.
_dc_gtm_UA-1038974-31 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
test_cookie15 minutesThe test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
caf_ipaddrsessionNo description available.
citysessionNo description available.
countrysessionNo description available.
gnt_eidsessionNo description available.
gnt_eu6 hoursNo description
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
systemsessionNo description available.
traffic_targetsessionNo description available.
Save & Accept
Powered by CookieYes Logo