RVDA’s Ingrassia Calls Proposed FTC Rule a ‘Step Backward’
Phil Ingrassia
EDITOR’S NOTE: The following was authored by Phil Ingrassia, president of the RV Dealers Association (RVDA), as part of his report at the recent RVDA Board of Directors meeting.
The Federal Trade Commission (FTC) is proposing new regulations that could have a major impact on the motor vehicle financing and sales process as well as require expanded disclosure on optional products typically sold in the F&I office.
The agency is also considering requiring dealerships to provide an “Offering Price” for any specific vehicle they advertise. Some in the industry have termed it the “out-the-door” price the dealership would charge to purchase the vehicle, exclusive of any government taxes and fees.
Redundant Rules
RVDA is conducting a thorough review of the proposed rule, and on the surface, the FTC’s initial draft regulation would impose redundant and ineffective requirements that will hurt buyers through increased prices, extending sales transaction times, requiring additional paperwork and signatures, and making the customer experience more confusing. Ironically, the FTC complains that the current amount of paperwork confuses the customer.
The proposed rule is extremely broad and clearly includes RVs along with all types of other vehicles. In the rule, motor vehicles are defined as: any self-propelled vehicle designed for transporting persons or property on a street, highway, or other road; recreational boats and marine equipment; motorcycles; motor homes, recreational vehicle trailers, and slide-in campers, and other vehicles that are titled and sold through dealers.
No one condones misleading advertising or unfair practices in the sales or financing process. However, the FTC already has the authority to combat deceptive trade practices and has used these regulations to go after dealers who do not comply with existing rules.
A Step Backward
During a time when the industry is working to simplify vehicle sales and pricing, streamline transactions, and improve the customer experience, this type of rule goes in the opposite direction. It focuses too much on a vehicle sales model of the past and fails to consider remote sales scenarios and future developments in the industry.
The FTC seems to be proposing a broad new regulatory framework without any detailed analysis of the scope of the so-called “junk fee” problem and is simply relying on anecdotal stories if something went wrong during a vehicle sales transaction. It’s the equivalent of trying to use a cannon to kill a fly.
RVDA will work with its members and industry allies to provide detailed comments to the FTC on this misguided proposal and minimize its impact on consumers, dealers, and the entire RV industry.
Thanks for your support!
Source: https://rvbusiness.com/rvdas-ingrassia-calls-proposed-ftc-rule-a-step-backward/
