Kansas Senator Jerry Moran and West Virginia Senator Joe Manchin have introduced a bill requiring the Federal Trade Commission to reinstate a process that allows public input before a change in made in regulations dealing with automotive retailing.
Last summer, the FTC provided notice of a proposed 126-page rule called the Motor Vehicle Dealers Trade Regulation Rule, which would change the process for consumers to buy, trade-in and finance new and used cars and trucks. The rule would re-regulate all aspects of automotive retailing.
The rule was advanced without a process for the public to provide comment. Senator Moran said the rule would create more paperwork when buying a car at the dealership, and it would lead to more bureaucracy and red tape for small businesses. Senator Manchin said the proposed rule is another example of unnecessary and burdensome federal overreach.
Moran said the FTC should be required to ask for and receive input from the public, and the bill he and Manchin have introduced will make sure that FTC regulators can’t finalize the rule without first getting feedback from industry leaders and the general public.
Don McNeely, President of the Kansas Automobile Dealers Association, said the rule would add hours to buying a car and make the process more expensive for car buyers.