The staff of the Federal Trade Commission (FTC) has provided its annual report to the Consumer Financial Protection Bureau (CFPB) on its enforcement and related activities in 2023 concerning the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA).
The report highlights the FTC’s enforcement actions and initiatives under these laws and their implementing regulations, focusing on areas such as automobile financing and leasing, payday lending, other credit and leasing, and electronic fund transfers.
In the area of automobile sales, financing, and leasing, the report underscores the Commission’s Combatting Auto Retail Scams (CARS) Rule. This rule aims to eliminate bait-and-switch tactics and hidden fees used by some car dealers. It also includes protections for military members. The new rule is projected to save consumers nationwide more than $3.4 billion annually and an estimated 72 million hours each year spent shopping for vehicles. However, while it was set to go into effect on July 30, 2024, its implementation has been postponed pending judicial review. The report also mentions ongoing litigation against auto dealer marketing firm Traffic Jam Events and refund payments sent to consumers in 2023 in the Napleton Auto case.
Regarding junk fees, the report notes a proposed rule that would prohibit hidden fees, ensure transparency about costs for consumers, and encourage competitive practices among companies.
For negative options, updates have been proposed to include a “click to cancel” provision requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up initially. Additionally, refund payments were made in 2023 due to a case against Triangle Media Corporation.
The report also highlights the agency’s Military Task Force which includes various FTC representatives focusing on initiatives aimed at assisting military consumers. Other efforts involving military lending are being conducted in collaboration with the Department of Defense. Furthermore, consumer education efforts regarding truth in lending, consumer leasing, and electronic fund transfer issues are outlined.
A copy of this report was also provided to the Federal Reserve Board.
Carole Reynolds from the Bureau of Consumer Protection served as lead attorney on this matter for the FTC.
The Federal Trade Commission works towards promoting competition while protecting and educating consumers. "The FTC will never demand money," states an official notice from them; they do not make threats or promise prizes either. For more information on consumer topics or reporting frauds visit consumer.ftc.gov or ReportFraud.ftc.gov.
