LAW-News-VSR Update-1024

A three-judge panel of the Fifth Circuit Court of Appeals heard oral arguments from the National Automobile Dealers Association and Texas Automobile Dealers Association regarding the Federal Trade Commissions’ Vehicle Shopping Rule on October 9, 2024, in New Orleans.

Each side received 30 minutes to present its argument, with neither providing much deviation from the well-established scripts that have become standard in recent months. Among other issues presented, NADA and TADA argued the rule is redundant and that the federal agency failed to provide a required Advanced Notice of Proposed Rulemaking (ANPRM). The FTC predictably countered by saying it was not required to provide the ANPRM while acting under the authority of the Dodd-Frank Act.

The key discussion throughout the oral arguments focused on whether the Vehicle Shopping Rule was in fact under the authority claimed by the FTC, or if it was a trade regulation under the FTC Act – which would require an ANPRM.

There’s no way to know which side “won” the argument, as the Court did not present a decision at the time. Written decisions are typically issued within 2-6 months following oral arguments, but there is no actual deadline for the Fifth Circuit to issue a ruling. Industry experts expect an update in early 2025.

Either party has the option to appeal to the U.S. Supreme Court following the Fifth Circuit’s ruling. Click here to listen to the full recording of the Oral Arguments.

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