MOAA Joins Court Brief Supporting New Protections From Predatory Car Dealers

MOAA Joins Court Brief Supporting New Protections From Predatory Car Dealers
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A new federal rule protecting customers from retail automobile scams would be of special benefit to servicemembers, who are “uniquely vulnerable to unscrupulous car dealers,” MOAA and partner organizations wrote in a May 21 brief to the 5th U.S. Circuit Court of Appeals.


The brief, filed in support of the Federal Trade Commission (FTC) in its defense in a case against the National Automobile Dealers Association and the Texas Automobile Dealers Association, addresses the Combating Auto Retail Scams (CARS) Rule, which would:

  • Make it illegal for dealers to make “deceptive claims” about pricing or financing.
  • Require dealers to inform customers of the “offering price” – the purchase price of the vehicle, minus government charges – and disclose when add-ons are optional.
  • Punish dealers who charge for add-ons that do not provide consumer benefits.
  • Remove hidden charges by requiring dealers to seek “express, informed consent” before billing.


“If, as petitioners … allege, a basic requirement of honest dealing constitutes a ‘sweeping’ and burdensome change for dealerships, that fact alone is proof of the need for the Rule,” according to the brief, brought forward by MOAA along with the National Military Family Association, Minority Veterans of America, the Enlisted Association of the National Guard of the United States, and other stakeholders.


[JULY 17 MOAA WEBINAR: Protecting Yourself, and Your Family, From Cybercrime]


The brief is the latest in MOAA’s efforts to protect the financial well-being of those who serve and have served, and their families, on multiple fronts:


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Get more details about the CARS Rule at this link.


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About the Author

Kevin Lilley
Kevin Lilley

Lilley serves as MOAA's digital content manager. His duties include producing, editing, and managing content for a variety of platforms, with a concentration on The MOAA Newsletter and Follow him on X: @KRLilley