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2 min read

The Conundrum of Express, Informed Consent in the FTC CARS Rule

Updated: Nov 13

Car dealership scene with a sales representative explaining a document to a customer, highlighting the concept of Express Informed Consent and the importance of clear communication in car buying.

The Federal Trade Commission's (FTC) CARS Rule (Combating Auto Retail Scams) aims to protect consumers from deceptive practices in car buying. However, one key provision, Express Informed Consent, is causing confusion and concern within the automotive industry.



This blog post dives into the complexities of Express Informed Consent, drawing insights from James Ganther's keynote address. We'll explore the challenges dealerships face and encourage you to watch the full video for a deeper understanding.


What is Express, Informed Consent?

What exactly is Express, Informed Consent under the FTC CARS Rule and why is it such a big deal? Let’s start with the definition. The Rule defines Express, Informed Consent as:


“An affirmative act communicating unambiguous assent to be charged, made after receiving and in close proximity to a Clear and Conspicuous disclosure, in writing, and also orally for in-person transactions, of the following:


  1. What the charge is for; and

  2. The amount of the charge, including, if the charge is for a product or service, all fees and costs to be charged to the consumer over the period of repayment with and without the product or service.”


The Rule further clarifies that the following do not constitute Express, Informed Consent:

  • A signed or initialed document, by itself;

  • Prechecked boxes; or

  • An agreement obtained through any practice designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision-making, or choice.


The Problem: Lack of Clarity

The issue lies in the ambiguity surrounding what constitutes "Express, Informed Consent." Traditionally, a signed contract signified that a customer understood and agreed to its terms. However, the CARS Rule adds a layer of complexity to this notion, making it challenging for dealerships to ensure compliance.


A Call for Clarity

The current state of Express, Informed Consent creates a significant obstacle. The retail automotive industry needs clear and comprehensive guidelines to ensure fair and transparent transactions for all. Without this clarity, dealerships are left guessing and potentially facing severe penalties for non-compliance.


Watch the Full Video for Expert Insights

James Ganther's keynote address delves deeper into the challenges surrounding Express Informed Consent. Watch the full video to gain a more comprehensive understanding of this critical issue and its impact on the automotive industry.





Stay Updated on Automotive Compliance

Subscribe to our blog for ongoing discussions on the CARS Rule, automotive compliance updates, and industry best practices. Follow us on LinkedIn to join the conversation and stay ahead of the curve. Let's navigate the world of automotive commerce together!


More About the CARS Rule:

2 min read

Defending Dealerships: The Fight Against the FTC's CARS Rule

Updated: Nov 13

Industry conference with representatives from Mosaic Compliance Services, NADA, and TADA discussing the FTC's CARS Rule, emphasizing collaboration and regulatory strategy.

The Federal Trade Commission's (FTC) CARS Rule has become a hot-button issue in the automotive industry. Designed to increase transparency in car buying, the rule has sparked debate between consumer advocates and dealerships. Mosaic Compliance Services has supported NADA and TADA in a lawsuit challenging the rule by submitting an amicus brief outlining the cost of compliance for dealers.



Mosaic penned an amicus brief to support the National Automobile Dealers Association (NADA) and the Texas Automobile Dealers Association's (TADA) lawsuit against the FTC.


Key Concerns of the CARS Rule

Dealerships argue that the CARS Rule imposes significant costs and burdens. Mosaic's amicus brief highlights the potential financial strain on dealerships nationwide, emphasizing the rule's compliance costs.


Protecting the Industry

James Ganther, CEO of Mosaic Compliance Services, stresses that the decision to oppose the CARS Rule goes beyond financial concerns. While the rule might lead to short-term gains for some compliance service providers, the long-term harm to dealerships is a critical issue. Ganther emphasizes the importance of advocating for the industry's well-being.


An Industry United

Mosaic's amicus brief isn't a solitary effort. APCO Holdings, Ascent Dealer Services, Auto Advisory Services Corp., Automotive Compliance Education (ACE), Brightline Dealer Advisors, LLC, iA American Warranty Group, Inc., and Portfolio Holding, Inc. are also named in the brief. These companies have chosen to prioritize the well-being of automotive dealerships. Their willingness to take a stand and invest resources in this fight is a testament to their dedication to protecting the interests of automotive dealerships nationwide.

Looking Forward

The legal battle surrounding the CARS Rule continues. This amicus brief is a testament to the industry's resilience in regulatory challenges. By working together, we hope to ensure a future that protects both consumer rights and the integrity of the automotive industry.


Gain Deeper Insights

For a comprehensive analysis of the CARS Rule and its implications, watch the full keynote speech by James S. Ganther, Esq. at Agent Summit 2024. This in-depth presentation provides valuable insights to help you stay informed and compliant in this evolving regulatory landscape.





Stay Updated on Automotive Compliance

Subscribe to our blog for ongoing discussions on the CARS Rule, automotive compliance updates, and industry best practices. Follow us on LinkedIn to join the conversation and stay ahead of the curve. Let's navigate the world of automotive commerce together!


More About the CARS Rule:

3 min read

CARS Rule Solutions for F&I Agents and Dealers

Updated: Nov 13

An F&I agent standing in a car dealership lobby discussing compliance and proactive preparation strategies with staff, emphasizing collaboration and adherence to regulations.

The Federal Trade Commission's (FTC) CARS Rule has introduced significant changes in the automotive industry, leaving dealerships and F&I agents grappling with new compliance requirements. This blog post explores key strategies and solutions to help agents navigate the CARS Rule effectively for their clients, ensuring transparency and adherence to regulations.



Understanding the CARS Rule Challenges

The CARS Rule aims to prevent deceptive practices in car sales, focusing on areas such as advertising, financing disclosures, and add-on products. For dealerships and agents, this means:

  • Stricter Advertising Regulations: Ensuring clear and accurate disclosures about pricing, financing terms, and availability.

  • Enhanced Transparency in F&I Products: Fully informing consumers about the benefits, costs, and voluntary nature of add-on products.

  • Focus on "Express, Informed Consent": Requiring explicit customer consent for all charges before finalizing transactions.


7 Strategies for CARS Rule Compliance

Here are seven key strategies to ensure compliance with the CARS Rule for dealers and agents:

  1. Develop a CARS Rule Policy:

  • Create a comprehensive policy outlining procedures for adherence to the rule's requirements, serving as a roadmap for dealership staff.

  1. Implement CARS Rule Training:

  • Educate dealership staff through training sessions covering key compliance measures, best practices, and potential risks.

  1. Establish Document Retention Protocols:

  • Ensure secure storage and easy accessibility of all relevant records for potential audits and compliance checks.

  1. Regular Review of Ads and Websites:

  • Conduct regular reviews of advertisements and dealership websites to verify compliance with disclosure requirements.

  1. Leverage AI-Powered Transaction Monitoring:

  • Utilize AI technology to proactively monitor transactions and identify potential compliance issues.

  1. Monthly Paperwork Reviews:

  • Implement monthly reviews of dealership paperwork to catch discrepancies and non-compliance issues early on.

  1. Conduct Regular Compliance Audits:

  • Schedule audits at least annually to assess overall compliance with the CARS Rule and identify areas for improvement.


Embrace Proactive Compliance

By implementing these strategies, dealerships, and agents can demonstrate a commitment to fair and compliant car sales practices. Proactive compliance minimizes risks, fosters consumer trust, and empowers dealerships and agents to thrive in the evolving regulatory landscape.


Gain Deeper Insights

For a comprehensive analysis of the CARS Rule and its implications, watch the full keynote speech by James S. Ganther, Esq. at Agent Summit 2024. This in-depth presentation provides valuable insights to help you stay informed and compliant in this evolving regulatory landscape.






Partner for Success

As the industry adjusts to the CARS Rule, collaboration is key. Finding reliable vendors who provide support and resources can give you a significant edge. It’s essential to find a vendor that suits your needs and helps you stay compliant.






Stay Updated on Automotive Compliance

Subscribe to our blog for ongoing discussions on the CARS Rule, automotive compliance updates, and industry best practices. Follow us on LinkedIn to join the conversation and stay ahead of the curve. Let's navigate the world of automotive commerce together!


More About the CARS Rule:


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