Part of the Auto purchase & financing playbook.
FTC formally withdraws the CARS Rule after court vacatur — existing consumer-protection laws still apply to car dealers
The FTC formally withdrew its Combating Auto Retail Scams (CARS) Rule effective February 12, 2026, after a federal appeals court vacated it. The rule's specific requirements — a true offering price up front and express consent for add-ons — are not taking effect, but the FTC Act's ban on unfair or deceptive practices and state consumer-protection laws remain in force.
What this means for you
A vacated rule changes which specific federal requirements exist — it does not make deception legal, and it never was. Car buyers in a pricing or add-on dispute are typically relying on the FTC Act, state unfair-and-deceptive-practices laws, and their own paperwork rather than the CARS Rule's disclosures, and that was true even while the rule was on the books, since it never took effect. Enforcement has continued without it: in April 2026 the FTC and Maryland announced a settlement with a dealership group over advertised-price and add-on allegations.
The facts
- The FTC's withdrawal of the CARS Rule took effect February 12, 2026, formally removing the rule it had published in January 2024 (89 FR 590).per the Federal Register (91 FR 6507) · as of February 12, 2026
- The Fifth Circuit Court of Appeals vacated the CARS Rule on January 27, 2025, ruling 2-1 that the FTC skipped a required advance-notice step in its own rulemaking procedures; the court did not rule on the substance of the protections.per the Fifth Circuit's opinion in NADA v. FTC, No. 24-60013 · as of January 27, 2025
- Auto-retail enforcement has continued after the withdrawal: on April 2, 2026, the FTC and the Maryland Attorney General announced a settlement with Lindsay Automotive Group over alleged deceptive pricing and unwanted add-ons.per the FTC's announcement · as of April 2, 2026
What you can do
The protections that survive a vacated rule live in the paper trail: dated copies of the ad, the buyer's order, and the finance contract are what state and federal complaint processes ask for. State attorneys general and the FTC both accept consumer complaints about dealer pricing and add-on practices regardless of the CARS Rule's status.
Common questions
Is the FTC CARS Rule in effect in 2026?
No. The Fifth Circuit vacated the CARS Rule in January 2025 and the FTC formally withdrew it effective February 12, 2026. The FTC Act's prohibition on unfair or deceptive practices and state consumer-protection laws still apply to car dealers.
What would the CARS Rule have required?
As published in January 2024, the CARS Rule would have required dealers to disclose a true offering price, banned misrepresentations about costs and terms, and required express informed consent for add-on charges. It was vacated on procedural grounds before it took effect.