FI showroom red and grey logo
MenuMENU
SearchSEARCH

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.

September 15, 2022
NADA Blasts FTC Over Proposed Dealership Rules

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

2 min to read


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.”

Ad Loading...

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.

Ad Loading...

“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

Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Photo of man holding a car key
Auto Financeby Hannah MitchellJune 17, 2026

New Cars a Tad More Affordable

May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.

Read More →
Photo of a white toy car next to piles of coins
Auto Financeby Hannah MitchellJune 8, 2026

First-Quarter Sees Long Auto Loan Growth

Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.

Read More →
Ad Loading...
Assurant, Mastering Credit Friction, Sales Series, Expert Trainer Josh Krach
Auto FinanceMay 29, 2026

Mastering Credit Friction

In this video, Josh Krach explains how to turn credit friction into an advantage.

Read More →
Couple talking with auto salesman next to new car inside dealership
Auto Financeby Hannah MitchellMay 20, 2026

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 →
Photo of a loan contract on a desk
Auto Financeby Hannah MitchellMay 13, 2026

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 →
Ad Loading...
black background with orange text saying Alec Hagey Toyota Financial Services President and CEO effective April 6 with picture of Alec Hagey
Auto Financeby Lauren LawrenceApril 6, 2026

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 →
Photo of person grabbing stacks of cash from a surface
Auto Financeby Gil Van OverMarch 30, 2026

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 →
Three people's hands on desk as one signs a document
Auto Financeby Hannah MitchellMarch 11, 2026

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 →
Ad Loading...
Auto Financeby Lauren LawrenceFebruary 23, 2026

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 →