FTC vs. Car Dealerships

AutoEvolution headline: The Big Four FTC Rules Car Dealers Fear Most Are One Step Closer to Reality

Sub-headline: The Federal Trade Commission (FTC) cleared one big hurdle recently by saying a decisive “no” to a delay request coming from the National Automobile Dealers Association (NADA). Things are shaping up as a victory for the Americans who are looking to buy their next vehicle from a dealership. Here’s what you need to know and how you can still make your voice heard.

Home > News > Editorial31 Aug 2022, 06:54 UTC · by Florin


The FTC is trying to turn car buying into a hassle-free process. The “Motor Vehicle Dealers Trade Regulation Rule” is comprised of four very important changes. They will transform the way Americans interact with various companies that act as middlemen for manufacturers.


Firstly, America’s newest automakers gave up on the dealership model of doing business. Companies like Tesla, Lucid, or Rivian discovered that it’s cheaper and more convenient to work directly with the consumer, albeit some states still prohibit car companies from selling directly to buyers. But workarounds have been found.

Legacy manufacturers enjoyed having dealers. Now, not so much. That’s why Ford, for example, is struggling with going on the same route as Rivian. It’s not that easy to give up on business partners that bought almost every product you threw at them.