Attorney Jim Ganther explains the reasoning behind the surprise appeals court decision vacating the FTC’s proposed CARS Rule, what may happen next and how dealers should respond.

The 5th Circuit Court of Appeals has vacated the Federal Trade Commission’s proposed CARS Rule on procedural grounds, finding the agency violated its own policies by finalizing a new trade regulation rule without advance notice. +

Arguing on procedural grounds, dealer association attorneys asked the 5th Circuit to overturn the Federal Trade Commission’s new vehicle shopping rule or remand it to the agency for revision. +