FTC REDO Act

HR 7101, the FTC REDO Act, rescinds the Federal Trade Commission's (FTC) January 2024 rule targeting auto retail scams and prohibits the FTC from finalizing future auto retail rules without meeting specific requirements. Before proposing new rules, the FTC must conduct a quantitative study on deceptive practices, consumer testing on new mandates, and an economic analysis of costs/benefits - each subject to 30 days of public comment and independent peer review. These studies must demonstrate evidence of unfair practices, show new rules enhance consumer protection without unduly burdening businesses, and compare the proposed rule to less burdensome alternatives. The bill directly affects the FTC's rulemaking process for auto retail, impacting how regulations on dealerships, disclosures, and consumer protections are developed.