FTC CARS Rule Vacated: What Used Car Buyers Still Have

The FTC's CARS Rule is dead at the federal level. On January 27, 2025, the Fifth Circuit vacated it in a 2-1 decision because the FTC skipped a required procedural step, so it has no force for used car buyers anywhere in the country. What still protects you is older and narrower: the FTC Used Car Rule and its Buyers Guide window sticker, the FTC's general ban on deceptive practices, which it is still enforcing against dealers, and state law. California went furthest, with its own CARS Act in effect since October 1, 2026, including a three-day return right on used cars priced at $50,000 or less. Everywhere else, the burden of catching junk fees and a bad history is still on you.

We read the Fifth Circuit's opinion, the dealer association's summary, the FTC's dealer guide to the Used Car Rule, California's announcements and DMV guidance, and an August 2026 FTC settlement on November 8, 2026. Plenty of articles from 2024 still describe the CARS Rule as if it were coming, which is part of why people are confused. It is not coming. At least not in that form.

What happened to the CARS Rule

The Combating Auto Retail Scams Rule was finalized by the FTC in 2023. It targeted bait-and-switch pricing and add-ons that do not benefit the buyer. The National Automobile Dealers Association and the Texas Automobile Dealers Association challenged it. The Fifth Circuit held that the FTC violated its own regulations by not issuing an advance notice of proposed rulemaking before the proposed rule, granted the petition and vacated the rule. The court decided it on that procedural ground, and NADA's summary says the rule now has no force or effect.

For a used car shopper, that means none of the CARS Rule's federal requirements apply at the dealership. If you read a blog post telling you a dealer "has to" give you an all-in price under the CARS Rule, that post is out of date. Annoying, we know. Some of those rules would have been genuinely useful.

What federal protection is left

The FTC Used Car Rule still applies. The FTC's dealer guide says dealers who sell more than five used vehicles in a 12-month period must post a Buyers Guide on each used car before it is displayed for sale, in every state except Maine and Wisconsin, which have their own similar rules. The guide has to say whether the car is sold as-is or with a warranty, and it tells you to get promises in writing, have an independent mechanic inspect the car and get a vehicle history report. Our Buyers Guide explainer walks through each box.

The FTC also still goes after dealers case by case under its general authority over deceptive and unfair practices. In August 2026, the FTC and Connecticut's attorney general announced a $4 million settlement with Manchester City Nissan. They alleged customers were charged to "certify" used cars the dealership had already advertised as certified pre-owned, and that products like total loss protection were slipped into financing without consent. The order requires the dealer to show the maximum total price most prominently and to get express, informed consent for every charge. That is close to what the CARS Rule would have required everywhere, but it binds one dealer group.

California's CARS Act

California turned many of the vacated rule's ideas into state law with SB 766. Since October 1, 2026, licensed California dealers selling or leasing light-duty vehicles under 10,000 pounds have to disclose the total price in ads that mention a specific vehicle and in the first written communication with you. Add-ons that were not installed by the manufacturer must be disclosed as optional, verbally and in writing, and dealers cannot sell add-ons with no real benefit, like oil changes on an EV.

The big one for used buyers is the cancellation right on used vehicles priced at $50,000 or less. The state's consumer agency describes it as three calendar days with a full refund minus a reasonable restocking fee, while the DMV's dealer manual says three business days, subject to mileage and condition requirements. The state's own pages do not use the same wording, which is frustrating, so read the cancellation terms on your contract and keep the paperwork. If you are buying in California, our California used car lemon law guide covers what happens after that window closes.

What to do if you are not in California

• Ask for the out-the-door price in writing before you visit. Our out-the-door price guide shows what should be in it.
• Read every line item. Our posts on dealer add-ons on used cars and doc fees explain which ones you can push back on.
• Watch the finance office. Charges that appear in the contract but never came up out loud are exactly what the Connecticut case was about, and our yo-yo financing red flags post covers the other classic move.
• Read the Buyers Guide on the window before you negotiate, and take a photo of it.

The history report is still your job

The Used Car Rule does not make a dealer hand you a CARFAX. The Buyers Guide only tells you to get a history report. Plenty of dealers provide one anyway, and you should still pull your own from the VIN on the car, since a report somebody else ran can be months old or tied to a different vehicle.

Cost-wise, CARFAX's own site tends to charge $39.99 to $44.99 per report, give or take. CarVins is an independent, licensed reseller of CARFAX and AutoCheck with no affiliation to CARFAX, AutoCheck or Experian. Over the past few weeks a single report here has cost about $5.50 as a guest or $4.50 as a member, and the pair about $6.75. We cannot promise those hold, so confirm at checkout.

Sources

• Fifth Circuit opinion vacating the CARS Rule, January 27, 2025
• NADA: FTC Vehicle Shopping Rule (CARS Rule) status
• FTC: Dealer's Guide to the Used Car Rule
• 16 CFR Part 455: Used Motor Vehicle Trade Regulation Rule
• Connecticut Attorney General and FTC: $4 million settlement with Manchester City Nissan
• California Business and Consumer Services Agency: CARS Act takes effect
• California DMV: Key dealer requirements under the CARS Act