NADA, FTC Spar Over CARS Rule in US Appeals Court
Arguing on procedural grounds, dealer association attorneys asked the 5th Circuit to overturn the Federal Trade Commission’s new vehicle shopping rule or remand it to the agency for revision.
CBT News’s Jaelyn Campbell said the challenge was brought by the National Automobile Dealers Association and the Texas Automobile Dealers Association, whose directors believe the agency violated its own procedures by skipping the “advance notice of proposed rulemaking,” which would have given “the public” — including the associations — an opportunity to contribute feedback earlier in the process.
However, “The FTC, represented by attorney Benjamin Aiken, defended its process, arguing that the CARS Rule falls under the Dodd-Frank Act, which doesn’t require advance notice,” Campbell writes. “Additionally, the agency pointed out that NADA had multiple opportunities to participate in the regulatory process, including submitting detailed comments on the proposed rule.”
