The Fifth Circuit Slams The Brakes And Vacates FTC CARS Rule
This week, the U.S. Court of Appeals for the Fifth Circuit vacated the Federal Trade Commission's (FTC) Combatting Auto Retail Scams (CARS) rule. Industry groups had challenged the rule, arguing that: The FTC violated Section 18(b) of the FTC Act by failing to issue an advance notice of proposed rulemaking (ANPRM) before promulgating the CARS rule. The FTC arbitrarily and capriciously failed to articulate a reasoned basis for the rule. The FTC's cost-benefit analysis was arbitrary and [...]