I 

118TH CONGRESS 

2D SESSION H. R. 7101 

To establish requirements for the Federal Trade Commission with respect 

to certain rules related to automotive retailing, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 29, 2024 

Mr. ARMSTRONG (for himself, Mr. GOODEN of Texas, Mr. GROTHMAN, Mr. 

FLOOD, Mr. MANN, and Mr. WILLIAMS of Texas) introduced the following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To establish requirements for the Federal Trade Commission 

with respect to certain rules related to automotive retailing, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Trade Com5 mission Review of Expensive and Detrimental Overregula6 tion Act’’ or the ‘‘FTC REDO Act’’. 

7 SEC. 2. AUTOMOTIVE RETAILING RULES. 

8 (a) RULE RESCINDED.—The final rule of the Com9 mission titled ‘‘Combating Auto Retail Scams Trade RegVerDate Sep 11 2014 05:56 Jan 31, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7101.IH H7101

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1 ulation Rule’’ and published in the Federal Register on 

2 January 4, 2024 (89 Fed. Reg. 590), shall have no force 

3 or effect. 

4 (b) PROHIBITION.—The Commission may not final5 ize, implement, or enforce a covered proposed rule unless 

6 the Commission satisfies the requirements described in 

7 subsection (c), and any other requirements applicable 

8 under Federal law, with respect to the covered proposed 

9 rule. 

10 (c) REQUIREMENTS FOR COVERED PROPOSED

11 RULES.— 

12 (1) REQUIREMENTS FOR ISSUANCE.—At least 

13 30 days before publishing in the Federal Register a 

14 notice of proposed rulemaking with respect to a cov15 ered proposed rule, the Commission shall— 

16 (A) complete— 

17 (i) a quantitative study on automotive 

18 retailing that— 

19 (I) uses a statistically valid na20 tional sample size of purchasers and 

21 lessees of motor vehicles from motor 

22 vehicle dealers; 

23 (II) is noticed and subject to 

24 public comment for a period of not 

25 less than 30 days before publication; 


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1 (III) is peer reviewed by an inde2 pendent third party with knowledge of 

3 automotive retailing; and 

4 (IV) determines whether there is 

5 quantitative evidence of a prevalence 

6 of unfair or deceptive practices in 

7 automotive retailing that supports the 

8 necessity of the covered proposed rule; 

9 (ii) quantitative consumer testing 

10 that— 

11 (I) uses a statistically valid na12 tional sample size of purchasers and 

13 lessees of motor vehicles from motor 

14 vehicle dealers; 

15 (II) is noticed and subject to 

16 public comment for a period of not 

17 less than 30 days before publication; 

18 and 

19 (III) determines whether new 

20 mandates, including disclosures, under 

21 the covered proposed rule would— 

22 (aa) enhance consumer un23 derstanding, education, and pro24 tection; and 


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1 (bb) not unduly impair le2 gitimate business activity, includ3 ing as compared to alternative 

4 approaches that may provide 

5 similar benefits; and 

6 (iii) a detailed economic analysis of 

7 the costs and benefits of the covered pro8 posed rule that— 

9 (I) is noticed and subject to pub10 lic comment for a period of not less 

11 than 30 days before publication; 

12 (II) is peer reviewed by an inde13 pendent third party with knowledge of 

14 automotive retailing from the perspec15 tive of consumers and motor vehicle 

16 dealers; 

17 (III) includes an assessment of 

18 the costs for consumers and small 

19 businesses, including as a result of 

20 new disclosures and paperwork; and 

21 (IV) compares the mandates of 

22 the covered proposed rule to more tar23 geted and less burdensome alter24 natives that achieve similar benefits; 

25 and 


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1 (B) submit to the Committee on Energy 

2 and Commerce of the House of Representatives 

3 and the Committee on Commerce, Science, and 

4 Transportation of the Senate a copy of the cov5 ered proposed rule and the results of the study, 

6 testing, and analysis conducted under subpara7 graph (A). 

8 (2) REQUIREMENTS FOR FINALIZATION.—The 

9 Commission may only finalize, implement, or enforce 

10 a covered proposed rule— 

11 (A) if— 

12 (i) an advance notice of proposed rule13 making with respect to the covered pro14 posed rule was published in the Federal 

15 Register; 

16 (ii) a notice of proposed rulemaking 

17 with respect to the covered proposed rule 

18 that includes the results of the study, test19 ing, and analysis conducted under para20 graph (1)(A) was published in the Federal 

21 Register; and 

22 (iii) the covered proposed rule was 

23 open for public comment for a period of at 

24 least 120 days; and 


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1 (B) if the duties, disclosures, penalties, 

2 and other mandates imposed by the covered 

3 proposed rule apply equally to franchised, inde4 pendent, and direct sellers of automobiles. 

5 (d) DEFINITIONS.—In this Act: 

6 (1) COMMISSION.—The term ‘‘Commission’’ 

7 means the Federal Trade Commission. 

8 (2) COVERED PROPOSED RULE.—The term 

9 ‘‘covered proposed rule’’ means any rule proposed by 

10 the Commission on or after January 4, 2024, that 

11 is similar or related to the final rule described in 

12 subsection (a). 

Æ 


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