
A U.S. appeals court on Monday threw out consumer protection rules adopted by the Biden administration to ban bait-and-switch tactics and prohibit auto dealers charging for add-on costs that do not benefit new car buyers.
The rule required up-front pricing in dealers’ advertising and sales discussions and informed consent from consumers before charging for any item. The FTC had said the new rules would bar junk fees like a service contract for an oil change for an electric vehicle or a duplicative warranty and estimated it would save consumers more than $3.4 billion and 72 million hours annually shopping for vehicles.