A coalition of Powersport, RV, Marine and even EV Golf Cart advocacy groups came together to get their respective dealer networks separated from blanket legislation facing the automotive retailers. Organizations as diverse as the Marine Retailers Association of America and the Motorcycle Industry Council united to explain the difference between their dealer bodies and the stereotypical "unscrupulous and predatory" picture of used car dealers to the Federal Trade Commission.
Retailers can breathe a collective sigh of relief as the Federal Trade Commission released the final version of its Auto Rule — renamed the Combating Auto Retail Scams Rule (CARS) — in December. The final language of the CARS Rule explicitly exempts Powersports Dealers and other non-automotive dealers from requirements of the rule.
CARS Rule Details
The rule will only cover “self-propelled vehicles designed for transporting persons or property on a public street, highway or road.” The rule will not apply to:
• Motorcycles, scooters and electric bicycles
• Recreational boats and marine equipment
• Motorhomes, recreational vehicle trailers and slide-in campers
• Golf carts
A number of national and state Dealer associations collaborated to voice opposition to the FTC’s initial rule, including the National Powersports Dealer Association, ultimately making the case for an exemption. “The NPDA appreciates the collaboration shown by our various partners to help overcome this regulation,” said Bob Althoff, Chairman of the NPDA. “We are also thankful that the FTC listened to the input and allowed for these exemptions.”
The FTC first issued a Notice of Proposed Rulemaking related to motor vehicle shopping in June 2022, and the original rule did not explicitly exclude Powersports Dealers, causing concern within the industry due to the potential cost and burden of compliance.
Additional concerns were raised about the potential economic impact on Powersports Dealers and other small businesses because the FTC failed to complete a Regulatory Flexibility Analysis to determine the economic impact.
“We are stronger together," added Kim Harrison, Secretary/Treasurer of the NPDA. “This win showcases the importance of working together with like-minded organizations to benefit Members. We are committed to ensuring Powersports Dealers are able to compete in a fair, favorable business environment.”