are getting hit with even more restrictions from the FTC in a new wave of regulations that limit the way that dealers may unfairly target consumers.

These changes will definitely influence the way that dealers are allowed to advertise and do business, but for drivers, it might be a step in the right direction.

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What’s the deal with the new restrictions for car dealerships?

Car dealerships have never had a very good reputation in the public eye—sometimes for good reason. The FTC is doing what they can, though, to limit the amount of shady

marketing and business tactics

that these dealerships can use to make money off of often-unsuspecting consumers.

Part of the reason that this new set of rules is being enforced is because of surging car prices, which might tempt car dealerships to utilize less-than-ethical business practices.

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What car dealership tactics are the target of the crackdown?

The

FTC

explains that bait-and-switch tactics are one of the issues driving the need for these new regulations. The FTC will be closely watching car dealerships, ensuring that they don’t lure in customers using false financing options, vehicle availability, or incorrect information regarding vehicle costs.

Other issues that the FTC is watching for include junk fees, claims of hydrogen-filled tires that are sometimes filled with normal air, and the requirement of up-front information regarding vehicle add-on costs.

MORE: Biden Proposed 'Right to Repair' Initiative

What are the consequences for car dealerships if they violate the FTC’s new regulations?

If car dealerships choose to violate the FTC’s regulations, they will be reported to law enforcement agencies who may choose to file criminal charges against fraudulent dealerships.

As the FTC reports, their careful watch has led to more than 50 actions by law enforcement agencies against car dealerships. Depending on the severity of their violations, car dealerships could face hefty federal fines or even prison time.

At present, the FTC’s proposition was released on June 23, 2022. That means dissenting comments from citizens and organizations can still be submitted to the FTC for review within 60 days.

MORE: Are Car Dealerships Coming To an End?

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