FTC Resources for Reporters

The Auto Marketplace

Buying or leasing a car is the biggest financial transactions for many consumers aside from owning a home, and having access to a vehicle also is essential for many Americans to carry on their daily lives. The FTC plays several important roles in making sure consumers get a fair deal in the auto marketplace:

• The agency brings auto-related enforcement actions, including against companies falsely promising to reduce auto loan payments, car dealers and others making deceptive advertising claims, telemarketers pitching bogus auto “warranties” that are actually extended service contracts, and companies promoting illegal pyramid operations through lease offers.

• The agency also enforces the Used Car Rule, which requires the familiar windshield stickers that appear on used cars at dealers throughout the country and give consumers critical information about who will pay for repairs if something goes wrong with the car they buy.

• In addition, the Dodd - Frank Act passed by Congress in 2010 gives the FTC new and expanded authority regarding motor vehicle dealers. Since 2011, the FTC has been gathering information on possible consumer protection issues that may arise in the sale, financing or lease of motor vehicles through a series of roundtables and by seeking public comments.

News Releases:

• FTC Opinion Letter Affirms Consumers' Rights under the Holder Rule – 05/10/2012
• FTC Charges that Auto Loan Schemes Falsely Promised They Could Stop Consumers’ Cars from Being Repossessed – 04/04/2012

• FTC Takes Action To Stop Deceptive Car Dealership Ads – 03/14/2012

• FTC Continues to Seek Public Input on Consumer Issues in Motor Vehicle Sales, Financing and Leasing – 02/21/2012

• FTC Stops Marketers From Selling Phony Fuel Economy Devices – 12/20/2011

• FTC Returns Almost $3.2 Million to Auto Warranty Robocall Victims – 08/31/2011

• FTC Finds Broad Compliance Among Auto Dealers with Rule That Protects Consumers with Car Loans – 05/16/2011

• FTC Settlement Bans Recidivist Robocaller from Telemarketing – 01/10/2011

• Auto Warranty Robocaller To Pay $2.3 Million, Sell Mercedes For Consumer Redress – 08/23/2010

• Court Puts Brakes on Company That Deceptively Pitched “Extended” Auto Warranties – 06/10/2010

• At FTC's Request, Court Halts Massive Robocall Operation – 06/10/2010

• Marketing Company Settles FTC Charges; Falsely Told Consumers They Were Pre-Approved for Auto Loans – 3/30/2010

• Auto Warranty Robocallers To Pay Over $655,000 and Sell Assets For Consumer Redress – 03/25/2010

• FTC Settlement Bans Robocalls from Auto "Warranty" Company – 09/01/2009

• FTC Files Suit to Stop Illegal Robocalls Pushing Vehicle “Warranty” Extensions – 05/14/2009

• Commission Reopens Public Comment Period On Used Car Rule; Commission Proposes Amendments to Fuel Economy Guide – 04/24/2009

• FTC Testifies on Protecting Consumers in the Used Car Market – 03/05/2009

• FTC Extends Public Comment Period Related to Used Car Rule Review – 09/19/2008

• FTC Approves Federal Register Notice on Regulatory Review of Used Car Rule – 07/16/2008

• FTC Testifies on Auto Repair Options – 11/10/2005

• Two Nevada Automobile Transport Brokers to Pay Consumer Redress to Settle FTC Charges That They Engaged In False and Misleading Practices – 11/13/2001

• Sweeping New York City Borough, FTC Surveys Used Car Dealers for Required "Buyers Guides" – 02/06/2001

• Sweeping Chicago's North Shore, FTC and State Investigators Check Used Car Dealers for Required "Buyers Guides" – 06/26/2000

• Sweeping The District, FTC Staff And D.C. Investigators Check Used Car Dealers For Required "Buyers Guides" – 06/12/2000

• FTC Staff and Washington, D.C. and Oregon Officials Check Used Car Lots for "Buyers Guide" – 10/06/1998

• FTC Issues Revised Dealer and Consumer Guides about Used Car Rule – 07/09/1998

• FTC Decided to Retain its Used Car Rule, which Requires Automobile Dealers to Post Important Warranty Information in “Buyers Guides” – 12/04/1995

Reports and Workshops:

• The Road Ahead:  Selling, Financing & Leasing Motor Vehicles (2011)

• Vehicle Buyback Disclosures (1995-1996)

Interactive Workshops – Transcripts

• Auto Dealers Roundtable (Nov  2011)

Business Education:

• A Dealer's Guide to the Used Car Rule

• The FTC's Privacy Rule and Auto Dealers: FAQs

• Labeling Alternative Fueled Vehicles

Congressional Testimony:

• Prepared Statement of the Federal Trade Commission On The Right To Repair: Industry Discussions and Legislative Options – 10/10/2005

Consumer Education:

• Ads for Auto Loan Modifications: You May Be Able to Drive a Better Deal with Your Lender

• Negative Equity and Auto Trade-ins

• FTC Offers Tips to Stretch Your Gas Dollars

• Understanding Vehicle Financing

• How to Steer Clear of Auto Warranty Scams

• Buying a Used Car

• Vehicle Repossession: Understanding the Rules of the Road

• Fuel Economy: Getting Up to Speed

• Consumer Protection resources: Buying a Car

• Consumer Protection resources: Financing, Leasing, or Renting

• Consumer Protection resources: Maintenance

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