FTC to Exempt Powersports Dealers From CARS - Combating Auto Retail Scams Rule
In America, the NPDA (National Powersports Dealer Association) has confirmed that the FTC (Federal Trade Commission) is to exempt powersports dealers from compliance with the final version of its 'Auto Rule' (CARS – Combating Auto Retail Scams Rule) - a regulation designed to protect consumers from "auto retail scams." The NPDA says that the rule would have required powersports dealers to fundamentally alter the way they do business.
The final language of the CARS Rule explicitly exempts powersports dealers and other non-automotive dealers from requirements of the rule.
The rule will only cover "self-propelled vehicles designed for transporting persons or property on a public street, highway or road." The rule will not apply to: motorcycles, scooters and electric bicycles; recreational boats and marine equipment; motor homes, recreational vehicle trailers and slide-in campers and golf carts.
"The NPDA appreciates the collaboration shown by our various partners to help overcome this regulation," said Bob Althoff, Chairman of the NPDA. "We are also thankful that the FTC listened to the input and allowed for these exemptions."
The FTC first issued a Notice of Proposed Rulemaking related to motor vehicle shopping in June 2022, and the original rule did not explicitly exclude powersports dealers, causing concern within the industry due to the potential cost and burden of compliance.
Additional concerns were raised about the potential economic impact on powersports dealers and other small businesses because the FTC failed to complete a Regulatory Flexibility Analysis to determine the economic impact.
In other news, the NPDA, which represents an industry said to be worth almost $55bn, announced that it has reached a goal of more than 400 members from all 50 States, plus Puerto Rico. The association also says that it has members in more than half of the 435 U.S. Congressional Districts.
"We would be remiss if we didn't thank our new friends at Cycle City Hawaii for signing up as our newest member, pushing us to 50-State status," said Darris Blackford, organizational director of the NPDA. "We certainly have our sights set on getting thousands of dealers to join us, but it feels good to have truly attained 'national' honors."
The NPDA membership grew by 40% in 2023. Among its 2023 successes, NPDA says that it ran a successful campaign urging OEMs to drop the shipping surcharges it imposed during the COVID-19 pandemic and pushed for a moratorium on facility upgrade mandates.