Republican senators oppose FTC’s proposed auto financing guidelines

US Sense. Cynthia Lummis (R-WY), John Thune (R-SD), Todd Young (R-IN), Shelley Moore Capito (R-WV), Mike Lee (R-UT) and Dan Sullivan (R-AK) transmitted correspondence to Federal Trade Commission (FTC) Chair Lina Khan on Tuesday expressing her opposition to the agency’s proposed rule regarding the dealer financing model for motor vehicles.

© Shutterstock

The proposed rule would create new reporting requirements for automakers providing direct financing to customers and assert that the FTC failed to provide advance notice of the proposed rule.

“We are writing in opposition to the Federal Trade Commission’s (FTC) ‘Regulatory Motor Vehicle Dealer Trading Rule’, published in the Federal Register on July 13, 2022,” the lawmakers wrote. “This proposed rule would fundamentally change the way vehicles are retailed in America. If implemented, this proposal would confuse customers, lengthen the transaction time to purchase a vehicle, limit consumer choice, increase red tape and impose burdensome new record-keeping requirements on small businesses. . More troubling, the FTC appears to have conducted no consumer testing to determine whether its new regulatory regime would work in practice.

In the letter, lawmakers ask the FTC to answer a series of questions — including inquiries about whether the FTC consulted with the Federal Reserve Board regarding the proposed rule; what consultations did the FTC have with the Consumer Financial Protection Bureau before releasing this proposal; and why the FTC chose not to issue an advance notice of proposed rulemaking to gather baseline data before issuing a notice of proposed rulemaking.

About the author