Boat dealers exempt from new FTC auto regulations

Published On: January 3, 2024Categories: Industry News, News

The Federal Trade Commission (FTC) released the final version of its Auto Rule, renamed the Combating Auto Retail Scams (CARS) Rule, exempting marine retailers and other non-automotive dealers. The Marine Retailers Association of the Americas (MRAA) and its coalition partners requested that recreational boat dealers be exempted from the requirements of the rule.

In its original form, the rule, which is designed to protect consumers from auto retail scams, did not explicitly exclude marine retailers, causing concern within the industry due to the potential cost and burden of compliance. A recent release from MRAA shared details on the CARS Rule:

The rule will only cover “self-propelled vehicles designed for transporting persons or property on a public street, highway or road.” The rule will not apply to:

  • Recreational boats and marine equipment
  • Motorcycles, scooters and electric bicycles
  • Motor homes, recreational vehicle trailers and slide-in campers
  • Golf carts

The MRAA worked with the RV Dealers Association, the National Powersports Dealer Association, a number of state-based marine trade associations, the U.S. Small Business Administration’s Office of Advocacy and more, to voice its opposition to the FTC’s initial rule, ultimately making the case for an exemption.