U.S. Sens. Joe Manchin (D-W.Va.) and Jerry Moran (R-Kansas) have introduced a bipartisan legislation to prevent the Federal Trade Commission (FTC) from finalizing and implementing a proposed rule governing the motor vehicle industry.
The FTC Review of Expensive and Detrimental Overregulation (REDO) Act would require the commission to conduct adequate consumer testing and cost-benefit analyses and allow for public feedback before finalizing the Motor Vehicle Dealers Trade Regulation Rule.
“The FTC’s proposed Vehicle Shopping Rule is yet another example of unnecessary and burdensome federal overreach,” Manchin said. “I am proud to lead this bipartisan effort with Sen. Moran to prohibit the FTC from finalizing and implementing the rule without conducting sufficient consumer testing and cost-benefit analyses. I encourage my colleagues on both sides of the aisle to support this commonsense step to protect our automotive dealers and consumers in West Virginia and across the country from this rushed federal regulation.”
Moran said the proposed rule would create more paperwork when buying a vehicle at a dealership, leading to more red tape for small businesses.
“If the FTC plans to overhaul the way Americans purchase vehicles,” Moran said, “they should be required to ask for and receive input from the public at the very least.”
The FTC’s proposed rule would significantly change dealers’ sales processes. The rule was proposed without an Advanced Notice of Proposed Rulemaking (ANPRM) – the process for the public to provide comment.
The FTC REDO Act would require the FTC to:
- Issue an ANPRM for public comment
- Conduct a quantitative study on auto retailing
- Conduct consumer product testing
- Publish a cost-benefit analysis based on real data
