FTC REDO Act

The final rule of the Commission titled Combating Auto Retail Scams Trade Regulation Rule and published in the Federal Register on January 4, 2024 (89 Fed. Reg. 590), shall have no force or effect.

The Commission may not finalize, implement, or enforce a covered proposed rule unless the Commission satisfies the requirements described in subsection (c), and any other requirements applicable under Federal law, with respect to the covered proposed rule.

At least 30 days before publishing in the Federal Register a notice of proposed rulemaking with respect to a covered proposed rule, the Commission shall—

(A) complete—

(i) a quantitative study on automotive retailing that—

(I) uses a statistically valid national sample size of purchasers and lessees of motor vehicles from motor vehicle dealers;

(II) is noticed and subject to public comment for a period of not less than 30 days before publication;

(III) is peer reviewed by an independent third party with knowledge of automotive retailing; and

(IV) determines whether there is quantitative evidence of a prevalence of unfair or deceptive practices in automotive retailing that supports the necessity of the covered proposed rule;

(ii) quantitative consumer testing that—

(I) uses a statistically valid national sample size of purchasers and lessees of motor vehicles from motor vehicle dealers;

(II) is noticed and subject to public comment for a period of not less than 30 days before publication; and

(III) determines whether new mandates, including disclosures, under the covered proposed rule would—

(aa) enhance consumer understanding, education, and protection; and

(bb) not unduly impair legitimate business activity, including as compared to alternative approaches that may provide similar benefits; and

(iii) a detailed economic analysis of the costs and benefits of the covered proposed rule that—

(I) is noticed and subject to public comment for a period of not less than 30 days before publication;

(II) is peer reviewed by an independent third party with knowledge of automotive retailing from the perspective of consumers and motor vehicle dealers;

(III) includes an assessment of the costs for consumers and small businesses, including as a result of new disclosures and paperwork; and

(IV) compares the mandates of the covered proposed rule to more targeted and less burdensome alternatives that achieve similar benefits; and

(B) submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a copy of the covered proposed rule and the results of the study, testing, and analysis conducted under subparagraph (A).

The Commission may only finalize, implement, or enforce a covered proposed rule—

(A) if—

(i) an advance notice of proposed rulemaking with respect to the covered proposed rule was published in the Federal Register;

(ii) a notice of proposed rulemaking with respect to the covered proposed rule that includes the results of the study, testing, and analysis conducted under paragraph (1)(A) was published in the Federal Register; and

(iii) the covered proposed rule was open for public comment for a period of at least 120 days; and

(B) if the duties, disclosures, penalties, and other mandates imposed by the covered proposed rule apply equally to franchised, independent, and direct sellers of automobiles.

In this Act:

The term Commission means the Federal Trade Commission.

The term covered proposed rule means any rule proposed by the Commission on or after January 4, 2024, that is similar or related to the final rule described in subsection (a).