The Federal Trade Commission released the final version of the Combating Auto Retail Scams rule earlier this week, and boat dealers are exempt from it. The final language of the CARS regulation explicitly excludes marine retailers and other non-automotive dealers.
“I think our success here stemmed from our work with a coalition of stakeholders, as well as the high-quality input we provided to FTC that highlighted why these proposed regulations are simply not needed for a recreational boat dealer,” Chad Tokowicz, government relations manager for the Marine Retailers Association of the Americas, said in a statement.
The CARS rule covers “self-propelled vehicles designed for transporting persons or property on a public street, highway or road.” As such, it does not apply to boats and marine equipment.
MRAA worked with the Recreational Vehicle Dealers Association, the National Powersports Dealer Association, state-based marine trades associations, the U.S. Small Business Administration’s Office of Advocacy and others in opposing the original rule.
“This is a huge win for boat dealers everywhere that frees us from regulations that would fundamentally change how we sell boats,” Dave Lewis, of Tommy’s Boats, said in the statement. “Victories like this are why we are such strong supporters of the MRAA’s advocacy work, and we encourage others to get engaged to support the recreational marine industry.”
The FTC first issued a notice of proposed rulemaking related to motor vehicle sales in June 2022. In its original form, the rule would have required marine dealers to change the way they do business and would have subjected them to a new regulatory scheme, according to MRAA.
The MRAA said its concern centered on marine dealers and other small businesses because the FTC failed to complete a regulatory flexibility analysis to determine the economic impact.
Despite the good news, the FTC has proposed another rule that could be troubling to marine retailers. In October, the FTC proposed a rule to prohibit “junk fees” across all sectors of the economy, from concert tickets to internet service provider fees.
According to the proposed junk rule, an advertised price for a product or service must be the out-the-door price (minus taxes). If there is a part or service required for a larger item or service to function as a consumer would expect, the price of that part or service must be included in the advertised price. Accessories or services that are optional do not need to have their cost included in the advertised price. MRAA has reviewed the rule and said it is working to make sure it doesn’t adversely affect the boating industry.
