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Adam CrowellJan 17, 20241 min read

Enhanced Penalties for FTC Violations in 2024

January 17, 2024.  Shortly after announcing the Combating Auto Retail Scams (CARS) Rule in December, The Federal Trade Commission (FTC) has enhanced the penalties for violations in 2024.

On January 11, 2024 - a month after announcing the Combating Auto Retail Scams (CARS) Rule - the Federal Trade Commission (FTC) announced enhanced penalties for violations in 2024.  These enhanced penalties took effect on January 10, 2024 and will impact the CARS Rule (CARS goes into effect on July 30, 2024) and existing violations for unfair and deceptive acts and practices (UDAPs).  

Specifically, the maximum civil penalty amount has increased to $51,744 for violations of Sections 5(l), 5(m)(1)(A), and 5(m)(1)(B) of the FTC Act, which encompasses UDAP violations, which includes CARS violations.

"Your dealership should take FTC compliance extremely seriously," said Adam Crowell, V.P. of Legal and Corporate Development at KPA + ComplyNet.  "The FTC has targeted dealerships with the CARS Rule and can hit your dealership with fines of $51,744 per violation," continued Crowell.    "It is important that you have a platform, process, and people that help your dealership mitigate the risk of a regulatory enforcement action," concluded Crowell.

As the auto industry leader in compliance solutions, KPA + ComplyNet provide the most comprehensive software solutions to help dealerships get compliant and to stay compliant with advertising, sales, and finance regulations.  To learn more about the KPA + ComplyNet solution for CARS,  visit our solutions page, or schedule a demo.


Adam Crowell

Adam is Vice President of Legal and Corporate Development at KPA and ComplyNet and is a licensed practicing attorney with over 21 years of experience primarily representing dealerships. Adam is a frequent speaker on the local, state, and national levels, including presentations to the National Automobile Dealers Association (NADA), the National Independent Auto Dealers Association (NIADA), and the National Association of Dealer Counsel (NADC).