Congressmen LaMalfa and Pappas Lead Bipartisan Call for FTC to Reopen Comment Period on Proposed Motor Vehicle Dealers Trade Regulation Rule

(Washington, D.C.) - Congressman Doug LaMalfa (R – Calif.) and Congressman Chris Pappas (D – N.H.) led their colleagues in calling on the Federal Trade Commission to reopen the comment period on the proposed Motor Vehicle Dealers Trade Regulation Rule.

The FTC failed to issue an advance notice of the proposed rulemaking in accordance with Section 1.10 of the Commission's procedural rules, issued the proposed rule on July 13, 2022, and closed the public comment period on September 12, 2022.

In the letter, the lawmakers wrote, "Since the Commission regrettably failed to issue an advance notice of the proposed rulemaking in accordance with Section 1.10 of the Commission's procedural rules, the extensive set of questions included in the proposed rule should have preceded the issuance of the proposed rule itself… Recognizing the importance of the matter and supporting the Commission in its efforts to protect customers and honest dealers from retail sales fraud practices by making the automotive buying process clearer and more competitive, we request the FTC to reopen the deadline for comments to be submitted on the proposed rule for an additional sixty to ninety days."

"The Commission failed to issue an advanced notice of this proposed rulemaking, as they're required to do so. They unfairly denied those who would be most impacted by this new rule an opportunity to comment. I'm urging the Commission to reopen the public comment period and give the people the opportunity to make their voice heard,"said Congressman LaMalfa.

The full text of the letter can be found here and below:

"Dear Chairwoman Lina Khan,

We write regarding the proposed Motor Vehicle Dealers Trade Regulation Rule, issued by the Federal Trade Commission on July 13, 2022. The public comment period ended September 12, 2022

This rule would affect tens of millions of consumer transactions annually. Unfortunately, due to the short period for public comment, many stakeholders and constituents were not able to submit feedback. It appears that many of the Rule's new requirements were prepared without any testing to determine their actual impact in the market. This information would provide critical feedback to the Commission.

Since the Commission regrettably failed to issue an advance notice of the proposed rulemaking in accordance with Section 1.10 of the Commission's procedural rules, the extensive set of questions included in the proposed rule should have preceded the issuance of the proposed rule itself. A major concern articulated by stakeholders relates to the fact that consumer transactions have already been regulated under existing law. Furthermore, the proposed measures would inject unintended costs into the auto retailing process and massively extend transactional times.

Recognizing the importance of the matter and supporting the Commission in its efforts to protect customers and honest dealers from retail sales fraud practices by making the automotive buying process clearer and more competitive, we request the FTC to reopen the deadline for comments to be submitted on the proposed rule for an additional sixty to ninety days.

Thank you for your attention to this deadline extension request. We look forward to your cooperation so that all actors concerned have the chance to express their opinion on this matter."

Congressman Doug LaMalfa is a lifelong farmer representing California's First Congressional District, including Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou and Tehama Counties.

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