FTC CARS Rule and Car Buying Transparency

What the rule was, what happened to it, and why honest dealerships never needed it in the first place.

What Was the FTC CARS Rule?

Car buying is one of the biggest financial decisions most people ever make. For years, too many shoppers walked out of dealerships feeling like they had been played — hit with fees they did not expect, financing terms they did not understand, and add-ons they never asked for.

The Federal Trade Commission had enough. In December 2023, it introduced the Combating Auto Retail Scams Rule, known as the CARS Rule, to clean it up.

The rule targeted four specific problems that had followed the auto industry for decades.

1. 01 No more misrepresentation. Dealers could not mislead buyers about pricing, discounts, or financing. Advertise a price, honor that price.
2. 02 A clear offering price. Every vehicle had to carry the actual price any customer could pay. No asterisks. No conditions buried in fine print. No phantom rebates that vanished at the desk.
3. 03 No junk fees. Charging for products or services that provided no real benefit was banned outright. Nitrogen in the tires, paint sealant you did not ask for, worthless protection packages — none of it belonged on your contract.
4. 04 Express, informed consent. Before any charge landed on your contract, you had to agree to it. Knowingly. Clearly. Not rushed through at the end of a four-hour session.

For honest dealerships, none of this was new. It was Tuesday.

So What Happened, and Where Do Things Stand Now?

This is where it gets important. We want to be straight with you.

The CARS Rule faced legal challenges almost immediately after it was finalized. In January 2025, a federal appeals court struck it down — not because consumer protection was the wrong goal, but because the FTC did not follow its own procedural rules in creating the regulation. The rule was formally withdrawn from federal law in February 2026. As written, it is no longer in effect.

But here is what that does not mean.

It does not mean hidden fees are now legal. It does not mean bait-and-switch pricing is back on the table. And it absolutely does not mean dealerships can go back to the old playbook.

The FTC intensified enforcement. In March 2026, just two months ago, the agency sent warning letters to 97 auto dealer groups across the country for deceptive pricing practices. The letters identified specific illegal practices observed in the industry and made clear that regulators are monitoring the marketplace and prepared to act. The FTC also has active lawsuits against multiple dealer groups for charging undisclosed fees and advertising prices they refused to honor.

The underlying law never changed. About 90 percent of what the CARS Rule sought to prohibit was already illegal under existing federal consumer protection statutes. The rule was struck down on a procedural technicality. The obligations it was built on are still fully in force.

States are filling the gap. California enacted its own CARS Act in October 2025. Massachusetts issued a Junk Fee Rule in March 2025. State attorneys general across the country, including in Georgia, have the authority to pursue deceptive dealer practices under state law and are actively using it.

What This Means for You as a Car Buyer in North Georgia

You still have every right to expect a fair deal. Here is what to hold any dealership to — here or anywhere else.

• Ask for the full offering price. That is the actual number you will pay, excluding only required government fees like tax and tag.
• Ask about every add-on. What is it, what does it do, and is it optional?
• Ask for your financing terms in plain language. Monthly payment, total loan amount, interest rate, and term length. All of it, upfront.
• Ask about every fee on your contract. If it was not in the price you were quoted, you deserve a clear explanation.

A dealership that hesitates on any of those questions is telling you something. A dealership that answers them without flinching has already earned your trust.

At John Megel Ford, we will answer all of them before you sit down in the finance office.

Where Price Sells Cars and Service Keeps Customers

That is our promise, and it is not a slogan. It is the only business model that actually works long-term.

John Megel Automotive Group has served North Georgia for over 25 years. We built that track record in Dawsonville at John Megel Chevrolet, voted "Best of Dawson County" for more than a decade. When we opened John Megel Ford in Cleveland, we brought the same culture with us.

The results followed. We earned the Ford President's Award in both 2022 and 2023 — Ford's highest recognition for customer satisfaction, sales experience, and service quality. Our 4.7-star rating across 764 reviews did not come from a campaign. It came from people who got exactly what we said they would get.

Here is how that plays out every day on our lot.

That is how price sells cars. And that is how service keeps customers.