Washington, D.C - The Fifth Circuit Court of Appeals sided with dishonest car dealers and struck down the FTC’s overwhelmingly popular CARS Rule. The Rule would require car dealers to provide honest, up-front pricing in vehicle sales and ban the sale of worthless add-ons.

“While it is surprising that the Court of Appeals chose to ignore the decade of research and procedure the FTC put into the CARS Rule, it is not surprising that such a commonsense rule to lower costs for Americans faced a legal challenge in the Fifth Circuit,” said Erin Witte, director of consumer protection for Consumer Federation of America.  “Buying a car is time consuming and frustrating. Rather than choosing to be part of the solution by simply agreeing to provide car buyers with transparency and fairness, the National Auto Dealers Association chose to aggravate the problem and sue the FTC in the court that has not hesitated to repeatedly put corporations over consumers. This fight is far from over.”