October 04, 2023

Manchin, Moran Introduce Bipartisan FTC Redo Act

Legislation would protect automotive dealers and consumers from unnecessary federal overreach without sufficient analysis and opportunity for public feedback

Washington, DC – Today, U.S. Senators Joe Manchin (D-WV) and Jerry Moran (R-KS) introduced the bipartisan Federal Trade Commission (FTC) Review of Expensive and Detrimental Overregulation (REDO) Act. The legislation would prevent the FTC from finalizing and implementing a rushed regulation change specific to automotive retailing without first conducting adequate consumer testing and cost-benefit analyses and allowing for public feedback.

“The FTC’s proposed Vehicle Shopping Rule is yet another example of unnecessary and burdensome federal overreach,” said Senator Manchin. “I’m proud to lead this bipartisan effort with Senator Moran to prohibit the FTC from finalizing and implementing the rule without conducting sufficient consumer testing and cost-benefit analyses. I encourage my colleagues on both sides of the aisle to support this commonsense step to protect our automotive dealers and consumers in West Virginia and across the country from this rushed federal regulation.”

“The FTC’s rule would create more paperwork when buying a car at the dealership and lead to more bureaucracy and red tape for small businesses,” said Senator Moran. “If the FTC plans to overhaul the way Americans purchase vehicles, they should be required to ask for and receive input from the public at the very least. This legislation will make certain FTC regulators can’t finalize the rule without first receiving feedback from industry leaders and the general public.”

“We applaud Senator Manchin for working across the aisle and sponsoring the FTC Redo Act. It is refreshing to see bipartisan support for a bill that would inhibit the FTC from burdening consumers with added costs, more paperwork and a longer sales process when purchasing their next vehicle,” said Jared Wyrick, President of the West Virginia Automobile Dealers Association.

Last summer, the FTC noticed a 126-page proposed rule, known as the “Motor Vehicle Dealers Trade Regulation Rule,” or the “Vehicle Shopping Rule,” which, if approved, would significantly change the process for consumers to purchase, trade-in and finance new and used cars and trucks. The proposed rule would re-regulate all aspects of automotive retailing and was noticed without an Advanced Notice of Proposed Rulemaking (ANPRM) – the process for the public to provide comment.

The FTC REDO Act would require the FTC to:

  • Issue an ANPRM for public comment;
  • Conduct a quantitative study on auto retailing;
  • Conduct consumer product testing; and
  • Publish a cost-benefit analysis based on real data.

The full text of the legislation is available here.