Why FTC ad rules could be good for dealers, according to NADA’s Mike Stanton - Automotive News
NADA president Mike Stanton argues that FTC's new CARS Rule advertising regulations, while initially burdensome, could ultimately benefit dealers by leveling the playing field and reducing deceptive practices. The rule requires clear disclosure of pricing and terms in ads, impacting how dealers market vehicles and F&I products.
Aforeworn detected this change in the Auto Dealer F&I Compliance space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Franchise dealers, independent used-car dealers, BHPH dealers, F&I managers should confirm how it applies to their specific situation before acting. There is a time constraint attached: Rule effective July 30, 2024; compliance required by that date.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Auto Dealer F&I Compliance continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
FTC's CARS Rule imposes stricter advertising requirements, including clear disclosure of total vehicle price, financing terms, and add-on product costs. Dealers must avoid misleading claims and ensure all material terms are prominently displayed.
Who it affects
Franchise dealers, independent used-car dealers, BHPH dealers, F&I managers
What you must do
Review and update all advertising materials (online, print, radio, TV) to comply with FTC's clear and conspicuous disclosure standards. Train sales and F&I staff on new rules.
Deadline
Rule effective July 30, 2024; compliance required by that date.
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