The FTC CARS Rule Reflects Requirements Dealers Already Face
Key takeaways
- The FTC's CARS Rule, also called the shopping rule, is not entirely new; elements of it existed as part of the original GLBA back in 2003.
- The CFPB issued similar mandates covering these practices back in 2015.
- Most state attorneys general have already been enforcing these types of requirements for a long time.
- Whether or not the CARS Rule officially takes effect is largely irrelevant because the underlying practices are things dealers should be doing anyway to protect their business.
- Dealerships already working with a compliance company like ARMP do not need to worry about the CARS Rule because those practices are already being handled proactively.
Summary
The FTC's CARS Rule, sometimes called the shopping rule, has drawn attention because of a Texas lawsuit challenging its enforcement, leaving dealers unsure whether it will stand. The video's point is that this uncertainty matters less than dealers think. Similar consumer protection expectations trace back to the original Gramm-Leach-Bliley Act provisions from 2003 and the CFPB's 2015 mandates, and state attorneys general have already been enforcing these principles for years regardless of the CARS Rule's fate.
The practical takeaway for a dealership is that the underlying practices the rule addresses are simply good business and should already be part of daily operations, not something adopted only because a federal rule requires it. Terry Dortch argues stores should be proactive rather than reactive, building these protections into standard procedure now rather than waiting to see if litigation resolves the rule's status. Dealerships already working with a compliance partner should have these requirements addressed as a matter of course, without needing to react to each new headline about the rule's legal standing.
Transcript
Introducing the FTC CARS Rule
Hi, my name is Terry Dortch. I'm with Automotive Risk Management Partners. I want to talk to you a little bit today about the FTC's rule, um, the shopping rule, right, or the CARS Rule, whatever you want to call it, it's the same thing. There's a lot of things going around right now, there's especially, because Texas, and because of the lawsuit that was filed to change, or to really, to stop, to eliminate the enforcement of it and everything else that the FTC was coming out with.
History of the rule under GLBA and CFPB
Bottom line is this, guys, this rule is at best something to listen to for a moment. These rules, this CARS Rule, shopping rule, whatever you want to call it, has been around for a long time. It was actually part of the original GLBA back in 2003. Now, it wasn't as laid out and as structured as it is today, but it was still there, it existed. And then when the CFPB came out with their mandates back in 2015, same thing. Attorney generals, most of your state AGs, are already, they've been enforcing this for a long time.
Why the rule's status is largely irrelevant
And here, whether or not this rule becomes effective or not is really irrelevant, because the things that are applicable in this rule are things you need to be paying attention to anyway. They make you a good business person. Those things are things that you need to be doing in order to protect your business.
How ARMP helps dealers stay proactive
Take the time, give us a call, we'll help you. If you've been doing business with us, you don't need to worry about the shopping rule or the CARS Rule, we've already taken care of it. That's the whole purpose of having a compliance company, is that when things like this arise, when that elephant in the room comes in, we're there to help take care of that for you. And we should be proactive, not reactive, to all of that. So we're going to be doing this long before. Please, guys, take a few minutes, give us a call, we can take care of all your cyber needs.
Questions this video answers
Is the FTC's CARS Rule (shopping rule) something brand new dealers need to worry about?
No. According to the transcript, this rule has been around for a long time in different forms, tracing back to the original GLBA in 2003 and CFPB mandates in 2015, and most state attorneys general have already been enforcing similar requirements.
Does it matter if the CARS Rule gets blocked or delayed by lawsuits like the one filed in Texas?
Not really. The transcript states that whether or not the rule becomes effective is irrelevant because the practices it covers are things dealers need to be paying attention to anyway to be good business people and protect their business.
What should a dealership do to prepare for the CARS Rule?
Take a few minutes to call a compliance company like ARMP. Dealerships already working with ARMP have these requirements already taken care of, since a compliance company's role is to proactively handle issues like this before they arise.
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Covered in this video
- FTC CARS Rule
- Gramm-Leach-Bliley Act
- CFPB mandates
- State Attorney General enforcement