MIC gets powersports dealership exemption from CARs Rule

Powersports dealerships have been excluded from the Federal Trade Commission’s new CARS Rule (i.e., junk fees), after the Motorcycle Industry Council’s (MIC) Government Relations Office submitted comments requesting an incremental approach and stressing that the problem is an automotive issue.

The FTC’s website stated that the new rule will “fight two common types of illegal tactics consumers face when buying a car: bait-and-switch tactics and hidden junk fees. The new rule is expected to save consumers nationwide more than $3.4 billion and an estimated 72 million hours each year shopping for vehicles.”

MIC points out that the rule only applies to on-road vehicles, using the following definition:

‘Covered Motor Vehicle’ or ‘Vehicle’ means any self-propelled vehicle designed for transporting persons or property on a public street, highway, or road. For purposes of this part, the term Covered Motor Vehicle does not include the following: (1) Recreational boats and marine equipment; (2) Motorcycles, scooters, and electric bicycles; (3) Motor homes, recreational vehicle trailers, and slide-in campers; or (4) Golf carts.

The CARS Rule prohibits automotive dealers from using bait-and-switch claims to lure vehicle buyers to the lot, including claims about the cost of a car or the terms of financing, the availability of any discounts or rebates, and the actual availability of the vehicles being advertised. It also tackles hidden junk fees – charges buried in lengthy contracts that consumers never agreed to pay. In some cases, these fees are for services or products that provide no benefit to consumers.

Source: MIC RideReport