NADA Blasts FTC Over Proposed Dealership Rules
Draft regulations would target bait-and-switch price ads, misleading F&I practices, and valueless F&I products.

NADA Regulatory Affairs President Paul Metrey wrote to the FTC that the proposed body of rules is “ill-conceived, ill-supported, ill-coordinated, untested and unlawful,” adding that it’s unnecessary in the first place, as “each harm it seeks to address is already regulated under existing law.”
IMAGE: NADA
The National Automobile Dealers Association gave the Federal Trade Commission an earful over its proposed restrictions on dealerships on the FTC’s last day taking public comment on the draft regulations, which are intended to curb bait-and-switch price ads and other unscrupulous practices.
NADA’s regulatory affairs president, Paul Metrey, wrote to the FTC that the proposed body of rules is “ill-conceived, ill-supported, ill-coordinated, untested and unlawful,” adding that it’s unnecessary in the first place, as “each harm it seeks to address is already regulated under existing law.”
Metrey continued that the regulations would “inject massive costs into the auto retailing process, greatly extend transaction times, greatly confuse consumers, and impede efficiencies aided by technological innovations that have significantly improved – and continue to improve – the customer experience.”
The trade group executive said the draft rules also lack “critical stakeholder input, essential customer testing and needed coordination with other federal agencies and state governments.”
NADA and other trade groups had unsuccessfully pushed for 120 more days to respond to the draft rules.
In addition to targeting bait-and-switch price ads, the proposal would regulate misleading finance-and-insurance office practices and valueless F&I products.
The 4-1 FTC decision favoring the rules said they’re intended to address customer confusion with add-ons, such as F&I coverage and after-market accessories.
“Many of the problems observed in the motor vehicle marketplace persist in the face of repeated federal and state enforcement actions, suggesting the need for additional measures to deter deceptive and unfair practices,” the FTC proposal says.
More Auto Finance

Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →
Permission or Approval: When to Notify Finance Sources
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Read More →
At-Risk Auto Borrowers Drive Looser Credit Access
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Auto Credit More Plentiful
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
Auto Loans Long as Stretch Limos
More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.
Read More →
AutoPayPlus Launches RePayPlus
The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.
Read More →