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    NHADAJan 4, 20241 min read

    Some Dealers, Like Powersports, Exempt from New FTC Auto Regulations

    Some specific dealers can breathe a sigh of relief as the Federal Trade Commission in December released the final version of its Auto Rule, renamed the Combating Auto Retail Scams Rule (CARS).

    PARTNER SPOTLIGHT

    The final language of the CARS Rule explicitly exempts powersports dealers and other non-automotive dealers from the requirements of the rule.

    CARS Rule Details

    The rule will only cover “self-propelled vehicles designed for transporting persons or property on a public street, highway or road.” The rule will not apply to:

    • Motorcycles, scooters and electric bicycles
    • Recreational boats and marine equipment
    • Motor homes, recreational vehicle trailers, and slide-in campers
    • Golf carts 

    A number of national and state dealer associations collaborated to voice opposition to the FTC’s initial rule, ultimately making the case for an exemption.  

    The FTC first issued a Notice of Proposed Rulemaking related to motor vehicle shopping in June 2022, and the original rule did not explicitly exclude powersports and other non-auto dealers, causing concern within the industry due to the potential cost and burden of compliance.

    Additional concerns were raised about the potential economic impact on dealers and other small businesses because the FTC failed to complete a Regulatory Flexibility Analysis to determine the economic impact. 

    “This win showcases the importance of working together with like-minded organizations to benefit Members,” said Kim Harrison, Secretary/Treasurer of the NPDA. 


    Source: The National Powersports Dealers Association

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