Cosponsor the “FTC Redo Act” (S. 3014)
The Federal Trade Commission (FTC) proposed a “Vehicle Shopping Rule” that would overwhelm car buyers and small businesses with needless and additional costs, paperwork and lengthened sales process. The rule was proposed without credible data-driven analysis or the necessary time for public comment to avoid unintended consequences to consumers and small businesses. A comprehensive study by the Center for Automotive Research found that the rule would cost consumers more than $38 billion (over 10 years) and add 2 hours for consumers to complete a typical transaction. The FTC’s proposed rule would make the auto buying experience worse, not better, for consumers. NADA supports the FY 24 Financial Services and General Government appropriations bill (H.R. 4664), which includes language that stops the FTC from finalizing, implementing or enforcing the “Vehicle Shopping Rule” for one year.
NADA also supports the “FTC REDO Act” (S. 3014), which would stop the “Vehicle Shopping Rule” and require the FTC to follow certain procedures to ensure the rule is the result of an informed process if it chooses to “REDO” the rule. The bill requires the FTC to 1) issue an Advance Notice of Proposed Rulemaking; 2) conduct a quantitative study on auto retailing; 3) conduct consumer testing; and 4) publish a cost-benefit analysis based on actual data. The FTC failed to perform these essential steps before proposing its rule. The “FTC REDO Act” will soon be introduced in the House. Members of Congress are urged to cosponsor the “FTC REDO Act” to stop the flawed “Vehicle Shopping Rule” and prevent the FTC from needlessly imposing significant burdens and costs on consumers and small business dealers.
EPA’s Proposed 67.5% Electric Vehicle Mandate Goes Too Far, Too Fast
The Environmental Protection Agency (EPA) proposed new emissions standards that would effectively require 67.5% of U.S. car sales to be electric by 2032. New car and truck dealers are essential to sell and service electric vehicles (EVs) and already have invested $5 billion of their own capital in the tools, equipment, training and recharging infrastructure to move from early adopters to mass marketing EVs to average consumers. Despite federal incentives, customers are not purchasing EVs in the quantities required for automakers to meet these different government mandates.
The current EPA proposal ignores real-world consumer demand and, as a result, goes too far, too fast. Consumers are not moving as fast as the proposed regulations, largely because there are other changes needed to make EVs broadly attractive to consumers, i.e., affordability, sufficient and reliable charging infrastructure, and acceptable charging speeds. A single national standard for achievable greenhouse gas regulations that leverages consumer demand is needed to produce the fleet turnover necessary to deliver environmental benefits. NADA supports language in the FY 24 House Interior-Environment appropriations bill (H.R. 4821) to prevent the EPA from spending money to finalize this unrealistic EV mandate for one year. H.R. 4821 passed the House on Nov. 3. Congress should enact legislation that stops EPA from finalizing its unreasonable EV mandate, which would severely limit the ability of consumers to choose a new vehicle that meets their budget and needs.
Pass the Non-Controversial “Supply Chain Disruptions Relief Act” (H.R. 700/S. 443)
Under existing law, the Treasury Department has the authority to allow businesses that utilize the last-in first-out (LIFO) accounting method extended time to replace inventory if a “major foreign trade interruption” makes inventory replacement difficult or impossible. Pandemic-related global disruptions and reduced auto production made it impossible for dealers to replenish new vehicle supply. Despite broad bipartisan support for the Treasury’s use of its existing authority regarding vehicle inventory, the Treasury declined as it believes additional legislative authority is needed.
Under the “Supply Chain Disruptions Relief Act” (H.R. 700/S. 443), Congress would determine that the conditions necessary to grant additional time to replace vehicle inventories under existing law due to pandemic-related foreign trade interruptions have been met. As a result of supply chain disruptions beyond the dealers’ control, LIFO recapture triggered significant, unexpected tax liability that continues to harm many smaller, multi-generational family dealerships. Members of Congress should cosponsor the “Supply Chain Disruptions Relief Act” and urge House and Senate leadership to pass this technical and non-controversial legislation at the earliest opportunity.
