WASHINGTON – U.S. Senators Jerry Moran (R-Kan.) and Joe Manchin (D-W.V.) today introduced legislation to require the Federal Trade Commission (FTC) to reinstate the process that allows the public the opportunity to provide feedback, comment and analysis before the commission finalizes a regulation change specific to automotive retailing.

Last summer, the FTC noticed a 126-page proposed rule, known as the “Motor Vehicle Dealers Trade Regulation Rule,” which, if approved, would significantly change the process for consumers to purchase, trade-in and finance new and used cars and trucks.

The proposed rule would re-regulate all aspects of automotive retailing and was noticed without an Advanced Notice of Proposed Rulemaking (ANPRM) – the process for the public to provide comment – and instead included 49 open-ended questions.

“The FTC’s rule would create more paperwork when buying a car at the dealership and lead to more bureaucracy and red tape for small businesses,” said Sen. Moran. “If the FTC plans to overhaul the way Americans purchase vehicles, they should be required to ask for and receive input from the public at the very least. This legislation will make certain FTC regulators can’t finalize the rule without first receiving feedback from industry leaders and the general public.”

“The FTC’s proposed Vehicle Shopping Rule is yet another example of unnecessary and burdensome federal overreach,” said Sen. Manchin. “I’m proud to lead this bipartisan effort with Senator Moran to prohibit the FTC from finalizing and implementing the rule without conducting sufficient consumer testing and cost-benefit analyses. I encourage my colleagues on both sides of the aisle to support this commonsense step to protect our automotive dealers and consumers in West Virginia and across the country from this rushed federal regulation.”

“The FTC got it wrong for Kansas consumers when it came out with a rule that adds hours to buying a car and makes it more expensive for car buyers. Sen. Moran’s legislation makes sure the FTC gets it right,” said Don McNeely, President of the Kansas Automobile Dealers Association.

The FTC REDO Act would require the FTC to:

• Issue an ANPRM for public comment;
• Conduct a quantitative study on auto retailing;
• Conduct consumer product testing; and
• Publish a cost-benefit analysis based on real data.

In November, Sen. Moran joined his colleagues in calling on FTC Chair Lina Khan to withdraw the proposed rule and instead issue a Request for Information or an ANPRM. The letter can be found here.

Full text of the legislation can be found here.

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