Biden's pow'r-cravin' Big Government be lookin' to mess with yer car-purchasin' ways, matey!
2023-07-21
Arr, in pushin' new rules on car buyin', the FTC seems to 'ave given sound rulemakin' a miss, favorin' a press release-driven agenda that may harm the customers it aims to protect, savvy?
The Federal Trade Commission (FTC) and its chair, Lina Khan, have been facing challenges and controversies. A survey revealed that only 49% of FTC staff believed that senior agency officials maintain high standards of honesty and integrity. In February, the sole Republican commissioner resigned, accusing Khan of dishonesty and subterfuge. The FTC under Khan seems to prioritize press releases over proper administrative processes, which could harm consumers.One example of the FTC's problematic approach is its proposed "Motor Vehicle Dealers Trade Regulation Rule." This rule aims to protect consumers from price gouging and false advertising but ends up creating redundant and contradictory laws. It imposes new mandatory disclosure requirements and restricts discussions on optional upgrades, limiting flexibility for both dealers and consumers.
Furthermore, the rule makes it easier for dissatisfied consumers to sue dealers, despite no evidence that the current legal process is ineffective. The FTC failed to conduct real-world consumer testing of its new format and disclosures and denied requests to extend the public comment period. The agency also lacked a thorough benefit-cost analysis, leading to questionable estimates and potential costs for consumers.
The Center for Automotive Research analyzed the rule's impacts and found that it would extend the vehicle purchasing process by two hours and cost consumers $38 billion over ten years, contradicting the FTC's claims.
The lack of proper process and transparency raises concerns about the legitimacy of the FTC's rule. The agency's focus on eliminating "tricks and traps" in the automotive purchasing process is commendable, but its disregard for robust public input and analysis undermines its credibility. Ultimately, consumers may bear the costs of this misguided policy.