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18 AGs Urge FTC to Strengthen Motor Vehicle Dealer Trade Rule

Motor Vehicle DealersSeptember 15, 2022Connecticut Attorney General

Summary

Attorney General William Tong joined a coalition of 18 attorneys general to urge the FTC to strengthen the Motor Vehicle Dealers Trade Regulation Rule. The coalition supports proposed updates that prohibit misrepresentations, require accurate pricing disclosures, and obtain informed consent for add-ons, while suggesting enhancements like written disclosures and record retention to prevent consumer harm in car sales.

Contract Impact

In-house legal teams should review vendor agreements with motor vehicle dealers, customer sales contracts, and financing/lease agreements. Focus on clauses governing pricing disclosures, add-on consent, misrepresentation prohibitions, and record retention. Updates may be needed to ensure templates include clear written disclosures for all fees and add-ons, obtain explicit informed consent before charging for extras, implement robust record-keeping to document disclosures and consent, and incorporate pricing accuracy guarantees to align with the strengthened Motor Vehicle Dealers Trade Regulation Rule.

Contract Search Terms

add-on disclosure requirementpricing accuracy clauseinformed consent mechanismrecord retention schedulemisrepresentation prohibitionfinancing disclosure termslease agreement transparencywritten disclosure mandateconsumer consent addendumdealer trade practice compliance

Laws Cited

Motor Vehicle Dealers Trade Regulation Rule

Violation Types

Entity Details

Entity

Motor Vehicle Dealers

Industry

Automotive

Multistate Coalition

Official Sources

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