October 15, 2022
by
by Dealers polled on FTC rules for industry
Cox Automotive’s third-quarter Dealer Sentiment Index survey (July 26 to Aug. 9) asked 574 franchised dealers about the Federal Trade Commission’s plan for new dealership advertising and finance and insurance rules.
How familiar are you with the new rule and corresponding regulations that were proposed by the FTC at the end of June?
| Aware and very familiar |
|
14% |
| Aware and somewhat familiar |
|
21% |
| Aware, but not very familiar |
|
16% |
| Aware, but not at all familiar |
|
9% |
| Not aware |
|
40% |
What parts of this regulation do you think should be kept and which ones should be removed?
Pricing information in advertising must match what is offered in-store.
| Keep as is | 59% | |
| Revise | 27% | |
| Remove | 14% |
Ban on all add-on products that do not provide a benefit to the consumer.
| Keep as is | 27% | |
| Revise | 28% | |
| Remove | 45% |
Dealers must list all optional add-ons and their prices online.
| Keep as is | 55% | |
| Revise | 25% | |
| Remove | 20% |
Dealers must present consumers with a form that lists the costs of any optional add-on products or services included in the purchase, and consumers must then provide their express, informed consent for all charges.
| Keep as is | 63% | |
| Revise | 22% | |
| Remove | 15% |
Dealers must disclose the true “offering price” of the vehicle (minus any extra fees and taxes), with and without financing.
| Keep as is | 53% | |
| Revise | 28% | |
| Remove | 19% |
Dealer must maintain detailed records for at least 2 years on almost all aspects of their trade practices.
| Keep as is | 41% | |
| Revise | 26% | |
| Remove | 33% |
Source: Cox Automotive