On August 7, 2026, the FTC issued a “Policy Statement Regarding Disparate-Impact Claims and ‘Unfair Discrimination’ Claims” announcing it will no longer pursue disparate-impact claims under Section 5 of the FTC Act and the Equal Credit Opportunity Act.
For dealers, this narrows federal fair-lending exposure. Previously, regulators could allege discrimination based on statistical outcomes alone, even without evidence of intent. The FTC now says it will only pursue cases involving intentional discrimination – which is generally harder to prove.
However, dealers shouldn’t assume fair-lending scrutiny is disappearing. This policy change applies only to the FTC. Many states still recognize disparate-impact claims and may respond with new legislation or renewed enforcement guidance, much like the reaction to the vacated FTC’s CARS Rule.
While the current administration has scaled back federal rulemaking and enforcement, states have shown they are willing to fill in the gaps. California has led the way with the California CARS Act, a direct legislative response to the vacated FTC CARS Rule.
To help you stay on top of enforcement actions and legislation that either impacts your business today, or could in the future if your state follows suit, here’s a look at several notable cases from 2026.
Enforcement actions
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FTC warning letters: Sent to 97 dealership groups in March to put the industry on notice that deceptive advertising and pricing practices violate Section 5 of the FTC Act.
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$4 million settlement: On August 19 the FTC and State of Connecticut announced a multi-million-dollar settlement. The business and individual members were cited for allegations of double-charging for certified pre-owned vehicles and collecting other fees without consumer authorization.
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Massachusetts AG guidance: New dealer-specific guidance warns that noncompliance may trigger liability under both the state’s motor vehicle advertising regulations and its Unfair and Deceptive Fees regulation.
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FTC v. Lindsay Automotive: An April announcement referenced potential refunds of more than $75 million and included personal liability extending to named executives.
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Passed Legislation
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California SB 766 (California CARS Act): Takes effect October 1. This direct response to the vacated federal CARS Rule is expected to be a model for other states looking to enact their own similar legislation.
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Colorado HB 25-1090: Effective January 1, the pricing law requires advertised price to reflect the true total price.
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Consumer privacy laws:
Kentucky,
Indiana, and
Rhode Island consumer privacy laws took effect in January, continuing a broader trend of states expanding privacy protections.
This is not a comprehensive list of all recent enforcement actions and legislation affecting the automotive industry. It is important to follow federal regulatory activity and your state’s legislative activity to ensure you’re up to date on the laws and regulations that affect your business. Any questions regarding your compliance should be directed to your legal counsel.