How Dealers Are Regulated

Auto dealers are subject to extensive federal and state consumer protections.

Dealers are regulated effectively by, among other agencies, the Federal Trade Commission (FTC) and the Federal Reserve Board. Congress even enhanced the FTC's rulemaking authority over motor vehicle dealers as part of the Wall Street Reform law. Click here for a list of the major federal statutes and regulations that currently cover automobile dealers, such as the Truth in Lending Act, Federal Consumer Leasing Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, Gramm-Leach-Blilely Act, Federal Trade Commission Act, etc.

In addition to federal laws, motor vehicle dealers are subject to rigorous state laws and regulations, licensed in every state, and bonded in virtually in every state. Dealers are subject to state consumer protection statutes, enforced by 50 state consumer protection agencies and state attorneys general.