Below is a recap of some of the most critical legislative priorities that NADA is addressing on half of franchised new car and truck dealerships across the country.

NADA Aims for “Do Over” on the FTC’s $38 Billion “Vehicle Shopping Rule”

The Federal Trade Commission (FTC) recently proposed a “Vehicle Shopping Rule” that would overwhelm car buyers and small businesses with additional paperwork and needlessly lengthen the sales process. The rule was proposed without credible analysis or the necessary time for public comment to avoid unintended consequences for consumers and small businesses.

A comprehensive study by the Center for Automotive Research found that the rule would cost businesses more than $38 billion over the next decade. Overall, the FTC’s proposed rule would make the auto buying experience worse, not better, for consumers.

The “FTC REDO Act” directs the FTC to “redo” its flawed “Vehicle Shopping Rule,” but this time with basic regulatory safeguards the agency should have properly undertaken in the first place. 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 any of these essential steps before proposing its rule.

Additionally, earlier this Summer, the House Appropriations Committee reported out an appropriations bill (H.R. 4664) which included language that stops the FTC from finalizing, implementing, or enforcing the “Vehicle Shopping Rule.”

NADA is urging members of Congress to cosponsor the “FTC REDO Act” to prevent the agency from needlessly imposing significant burdens and costs on consumers and small business dealers.

EV Mandates Go Too Far Too Fast

The Environmental Protection Agency (EPA) recently 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 EVs and have already invested $5 billion of their own capital in the tools, equipment, training, and recharging infrastructure, which are critical to laying the foundation to move from early adopters to mass marketing EVs to the average consumer. Despite federal incentives, customers are not purchasing electric vehicles 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 of other changes needed to make EVs broadly attractive to consumers: affordability, a 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 is urging members of Congress to sign letters to congressional leadership warning that unless the EPA creates a national greenhouse gas standard that is reasonable and achievable for all 50 states and stops attempting to ban the sale of gas-powered cars, Congress will need to step in.

NADA Urging Congress to Pass the “Supply Chain Disruptions Relief Act”

Under existing law, the Treasury Department has authority to allow businesses that utilize the last-in, first-out (LIFO) accounting 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. 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. NADA is urging members of Congress to cosponsor the “Supply Chain Disruptions Relief Act” and to pass this legislation at the earliest opportunity.

NADA supports “Preserving Choice in Vehicle Purchases Act” (H.R. 1435)

The “Preserving Choice In Vehicle Purchases Act” (H.R. 1435) was introduced in March 2023 and passed in the U.S. House of Representatives on September 14, 2023. It now awaits consideration in the Senate.

The legislation would amend the Clean Air Act to prevent the elimination of the sale of internal combustion engine and put the U.S. on a path to one national standard, as opposed to a piecemeal approach across the country.

NADA will continue urging the Senate to pass this important legislation.