The proposed Motor Vehicle Trade Regulation Rule of the Federal Trade Commission (FTC) would “frustrate” consumers if adopted, the national RV Dealers Association (RVDA) said, noting the rule would add to sales transaction times for consumers and increase the cost of RVs.
The rule will add unnecessary administrative overhead for dealers, the RVDA noted in a press release announcing its criticism of the FTC rule through formal comments filed on September 12.
According to the trade association, the regulation would significantly change the way motor vehicles are sold, marketed, and financed in the United States by adding additional disclosures on pricing, vehicle add-ons, and onerous new recordkeeping requirements.
Moreover, the rule fails to take into consideration the sales and pre-delivery processes and costs associated with different types of motor vehicles.
“The automobile industry has standardized motor vehicles that can be driven away unaltered by the customer that same day, while in the RV industry it is customary to prepare a vehicle before a customer is able to use the RV,” according to RVDA.
RVDA said that the rule, as currently drafted, could require dealers to provide the customer with a new set of disclosures every time the customer asks for a new option or add-on for the vehicle.
The comments also point out that the FTC showed no justification for including RV dealers in the proposed rule. The agency did not produce “any findings that these unfair and deceptive acts or practices are prevalent in the RV industry,” RVDA stated in the comments.
The association believes this “enormous change in business practices” to add more complex and costly administrative requirements could drive small RV dealers out of the industry, removing small RV dealers that are capable of assisting customers across the country while they travel.
RVDA was also clear that the association “does not condone misleading advertising or unfair practices in the sales or financing process. However, the FTC already has the authority to combat deceptive trade practices and has used these regulations to go after dealers who do not comply with existing rules.”
RVDA will keep members informed as the FTC considers further action on the proposed rule.
RVDA is the national association dedicated to advancing the RV retailer’s interests through education, member services, industry leadership, and market expansion programs that promote the increased sale and use of RVs and that enhance the positive image of the RV experience.
RVDA is at the forefront of dealer-manufacturer issues, state and federal legislation that impact RV retailers. For more information, visit www.rvda.org.
Seems like the RVDA is firing up its criticism of the proposed FTC rule, claiming it would burden dealers. On the flip side, they argue the FTC already has the tools to combat deceptive trade practices without adding more horsepower to the regulatory engine.