WASHINGTON—Calling a new Federal Trade Commission proposal’s language “opaque,” CUNA is expressing concern the potential new rule’s effects on car dealer ad-ons.
“We support the FTC’s effort to develop a rule that addresses bad actors in the auto dealer space without inhibiting the ability of consumers to have choice in the offering of voluntary protection products and services,” said Luke Martone, CUNA senior director of advocacy and council.
While credit unions are not directly subject to this rule, several areas need further clarification, according to Martone.
“The proposal would require dealers to provide consumers with information about optional add-on charges,” explained Martone. “While we support transparent disclosures to consumers, we think that the FTC proposal is duplicative several laws and regulations that are already in place to provide necessary transparency for consumers—including the Truth in Lending Act and Regulation Z.
Specific Objections
“We think that the proposal addresses a number of important issues, however it is really important that consumers have choice when it comes to voluntary products,” he continued. “We support efforts to ensure that consumers are not misled into believing an option is mandatory, and we feel the language in the proposal is opaque, and we have some specific objections.”
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