Court Overturns FTC's Auto Dealer Restrictions

A U.S. appeals court has invalidated rules set by the Biden administration that aimed to eliminate bait-and-switch sales tactics and prevent auto dealers from charging for unnecessary add-ons. The 5th Circuit Court ruled that the FTC violated procedural rules, putting the regulations on hold while facing legal challenges.

In a significant legal development, a U.S. appeals court has nullified the Biden administration’s regulations intended to curtail deceptive sales tactics in the auto industry.

The 5th Circuit Court of Appeals ruled 2-1 that the Federal Trade Commission breached procedural regulations, halting rules that mandated upfront pricing.

This decision stalls the ongoing efforts until the legal disputes are resolved, affecting car buyers nationwide.