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US court throws out Biden FTC car-buying consumer rules

ReutersJan 27, 2025 11:55 PM

- A U.S. appeals court on Monday threw out rules adopted by the Biden administration to ban bait-and-switch tactics and prohibit auto dealers charging for add-on costs that do not benefit new car buyers.

The 5th Circuit Court of Appeals in a 2-1 decision said the Federal Trade Commission had violated procedural rules. The rule, which was finalized in January 2024 but put on hold pending the legal challenge, required up-front pricing in dealers' advertising and sales discussions.

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