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FTC CARS Rule: current status

Short answer: the Combating Auto Retail Scams (CARS) Rule would have required honest pricing and express consent for add-ons, and banned add-ons with no benefit. It never took effect.

Best pick for your situation

Status (as of 2026-10-15): the FTC CARS Rule is not in effect. The Fifth Circuit vacated it on Jan. 27, 2025, and the FTC formally withdrew it effective Feb. 12, 2026. Existing laws against deceptive pricing and add-on practices (FTC Act, Truth in Lending, state laws) still apply.

The math:

Timeline: proposed July 13, 2022 → final rule Jan. 4, 2024 (effective date July 30, 2024) → postponed during the court challenge → vacated Jan. 27, 2025 → withdrawn Feb. 12, 2026 (91 FR 6507).
Why vacated: the court held the FTC skipped a required advance notice of proposed rulemaking (ANPRM) and that the error wasn't harmless; it didn't rule on the rule's substance.

Sources: Nat'l Auto. Dealers Ass'n v. FTC, 127 F.4th 549 (5th Cir. Jan. 27, 2025); Federal Register 91 FR 6507: FTC withdrawal of the CARS Rule, effective Feb. 12, 2026; Federal Register 89 FR 590: CARS Rule as issued (Jan. 4, 2024)

A best fit for the situation described, not financial advice or a buy/sell recommendation. Partner links never change a pick.

Your roadmap

Don't rely on the CARS Rule in a dispute; it isn't law.
Get the out-the-door price in writing anyway (FTC guidance).
Refuse unrequested add-ons and check the contract for them.
Report deceptive dealer practices to the FTC at ReportFraud.ftc.gov and to your state attorney general.
Check our page for changes: we'll update if the FTC restarts rulemaking.

What it would have required

No misrepresentations about price, financing or add-ons.
Accurate pricing disclosures, including the offering price.
Express, informed consent for every charge.
No add-ons that provide no benefit (for example, nitrogen in tires already filled, or GAP that wouldn't pay).

These are still good rules to hold any dealer to, and the negotiation roadmap builds them in.

Sources

Nat'l Auto. Dealers Ass'n v. FTC, 127 F.4th 549 (5th Cir. Jan. 27, 2025) (checked 2026-10-15)
Federal Register 91 FR 6507: FTC withdrawal of the CARS Rule, effective Feb. 12, 2026 (checked 2026-10-15)
Federal Register 89 FR 590: CARS Rule as issued (Jan. 4, 2024) (checked 2026-10-15)
FTC: Financing or leasing a car (checked 2026-10-15)

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FAQ

Is the FTC CARS Rule in effect?

No. The Fifth Circuit vacated it on Jan. 27, 2025 (Nat'l Auto. Dealers Ass'n v. FTC), and the FTC withdrew it from its rules effective Feb. 12, 2026 (91 FR 6507).

Why was the CARS Rule struck down?

The court found the FTC violated its own procedures by not issuing an advance notice of proposed rulemaking, and the error wasn't harmless.

Are junk dealer fees still illegal?

Deceptive or unfair practices are still illegal under the FTC Act and state law; the CARS Rule would have added specific requirements.

Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.