By the SEMA Washington, D.C., office
U.S. Representatives Bill Posey (R-FL) and Sanford Bishop (D-GA), the co-chairs of the Congressional Automotive Performance and Motorsports Caucus, recently sent a letter (read the full letter HERE) to the Federal Trade Commission (FTC) requesting clarity on the agency's Combating Auto Retail Scams Trade Regulation Rule (CARS Rule) to ensure that it isn't used as a justification for auto dealers to limit customization options offered before the first point of sale.
The CARS Rule is intended to provide more transparency to the process of buying and leasing cars and to stop deceptive and unfair practices that harm consumers, including bait-and-switch tactics, hidden charges, and other conduct. While the rule makes it illegal for auto dealers to charge customers for add-ons that don't provide a benefit, some dealers cite the CARS Rule as a reason they can't continue to offer legitimate add-ons offered by members of SEMA's Professional Restylers Organization (PRO) Council.
The letter from Reps. Posey and Bishop requests that the FTC affirm that the rule does not prohibit dealerships from offering services that consumers demand, such as window tint, paint/underbody paint coating, replacing cloth with leather seat covers, paint protection film that scientifically reduces clear coat damage from rock chips, truck lifts, wheel and tire replacements, truck accessories, window tint that reduces ultraviolet (UV) rays, Tonneau Covers, spray-in bed liners, and remote starts.
"Thank you to Representatives Posey and Bishop for seeking guidance from the FTC on this important matter," said Colby McLaughlin, President of Trim Illusion and Chair of SEMA's PRO Council. "It is critical that the FTC clarifies that the CARS Rule allows auto dealerships to continue to offer vehicle upgrades and customization offered by restylers. This letter from SEMA's allies in Congress is a testament to the association's advocacy efforts to protect our businesses and the future of the industry."
Implementation of the CARS rule is currently delayed as the FTC awaits the outcome of a lawsuit before the 5th U.S. Circuit Court of Appeals from the National Automobile Dealers Association.
For additional information, contact Eric Snyder, SEMA's senior director of federal government affairs, at erics@sema.org.