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employees interpreting the vehicle shopping rule
National Auto Dealers Association (NADA)Sep 25, 20241 min read

NADA Issues Driven Guide on the Pending Vehicle Shopping Rule

NADA is releasing A Dealer Guide to the Vehicle Shopping Rule. This guide provides dealership compliance guidance for the pending Vehicle Shopping Rule (VSR or Rule) and includes sample disclosure forms.

PARTNER SPOTLIGHT

The VSR (which the Federal Trade Commission (FTC) refers to as the “CARS” Rule) is currently stayed pending the resolution of litigation challenging the rule brought by NADA and the Texas Automobile Dealers Association. NADA is issuing this guide before the resolution of the litigation because compliance with the VSR will be time-consuming and complex, requiring training, revised systems, and coordination with vendors.

This guide provides an overview of the key requirements of the VSR and compliance guidance to dealers. The Driven Guide covers topics including:

  • Prohibited misrepresentations
  • Disclosure requirements
  • Dealership “add-on” considerations
  • Recordkeeping requirements
  • State and federal law preemption considerations
  • Sample employee policy and disclosure forms

The Rule’s application to commercial truck dealers remains unclear. NADA/ATD is actively working to seek clarity from the FTC on this open issue.

The implementation date for the VSR is unknown. If the court vacates (disapproves) the VSR, the new duties discussed in the guide will not take effect. If the court upholds the rule, the FTC will establish a new compliance date and it is unclear what period of time the FTC would provide for dealerships to comply with the new requirements. Accordingly, NADA is releasing this guide now to ensure dealerships have adequate time to comply with the VSR in the event that it is upheld by the court.

The Driven Guide was prepared with NHADA Diamond Partner ComplyAuto. Information on the rule from the FTC is available here.

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National Auto Dealers Association (NADA)

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