The Federal Trade Commission (FTC) is proposing a rule that would ban U.S. car dealers from selling products and add-ons that provide no benefit to the consumer, as well as ban misleading advertising practices.

Products on the proposed FTC ban would include warranties and insurance products that duplicate the coverage of the original manufacturer warranty, as well as nitrogen-filled tires that do not contain any more nitrogen than naturally exists in the air.

As we’ve covered before, so-called F&I (finance and insurance) products are often pushed onto consumers, and they can add thousands of dollars to the total cost of a vehicle. Additionally, some dealers have mandatory add-ons that are not disclosed on advertised prices. The proposed rules would prohibit these deceptive, bait-and-switch advertising practices.

We think these proposed rules are a step in the right direction. While dealers would still have the ability to charge an added dealer mark-up (ADM), the advertising and disclosure rules could reduce the unpleasant surprises often experienced by customers when they walk into a dealership.

What do you think of this proposed regulation? Share your thoughts in this trending Leasehackr Forum topic.