On January 4, 2024, the Federal Trade Commission (‘‘FTC’’ or ‘‘Commission’’) published a Final Rule in the Federal Register, titled ‘‘Combating Auto Retail Scams Trade Regulation Rule’’ (‘‘CARS Rule,’’ ‘‘Rule,’’ or ‘‘Final Rule’’), in order to curtail certain unfair or deceptive acts or practices by motor vehicle dealers. The CARS Rule was to become effective on July 30, 2024. Because of a pending legal challenge, this document announces that the effective date of the Final Rule is delayed until further notice.
FTC Trade Reg. Rules
The Board of Governors of the Federal Reserve System (Board) is repealing its Regulation AA, which was issued pursuant to its rule writing authority under section 18(f)(1) of the Federal Trade Commission Act (FTC Act or Act). Section 1092(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) repealed section 18(f)(1) of the FTC Act, thus eliminating the Board’s rule writing authority under the Act.
The FTC issued amendments to the ‘‘Rule Concerning Use of Prenotification Negative Option Plans,’’ retitled the ‘‘Rule Concerning Recurring Subscriptions and Other Negative Option Programs.’’ The final Rule would have applied to all negative option programs in any media. On July 9, 2025, the Eighth Circuit vacated all of the 2025 amendments, both the provisions that were already in effect and the remaining provisions that were to go into effect on July 14, 2025. See Custom Commc'ns, Inc. v. Fed. Trade Comm'n, 2025 WL 1873489, at *9 (8th Cir.
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The FTC policy statement provides guidance regarding its enforcement of various statutes and FTC regulations addressing negative option marketing and operating.