Great news for honest dealerships. The Federal Trade Commission (FTC) has just announced the Combating Auto Retail Scams (CARS) rule, a set of regulations targeting “junk fees” in automobile sales.
The good news is that RV, boat, and power sports dealers are exempt from these regulations, as confirmed in a recent news release by the Recreational Vehicle Dealers Association (RVDA).
This exemption comes after the RVDA filed comments with the FTC, expressing concerns about the potential negative impact on RV consumers. The rule primarily focuses on ensuring proper disclosure of add-on products and services during sales.
RV dealers argued that additional equipment, such as battery options, towing systems, and leveling devices, is crucial for the safe operation of RVs.
According to RVDA, “The rule states that “Covered Motor Vehicle” or “Vehicle” means any self-propelled vehicle designed for transporting persons or property on a public street, highway, or road. For purposes of this part, the term Covered Motor Vehicle does not include the following:“
- Motor homes, recreational vehicle trailers, and slide-in campers;
- Motorcycles, scooters, and electric bicycles;
- Recreational boats and marine equipment; or
- Golf carts.
It’s important to note that the FTC, despite the exemption, will continue to monitor RV, boat, and motorcycle dealers for any unfair or deceptive practices. If necessary, the agency remains committed to taking action to further protect consumers.
Dealers should be aware that misrepresenting material terms, deceiving customers about prices, add-ons, or payments, and charging for products without providing benefits are violations of the FTC Act. This exemption is undoubtedly a positive development for the dealership industry, and we’ll keep you updated on any future developments.
