who regulates car dealerships

[DelRowan]

Car dealerships in the United States are regulated by a combination of federal and state agencies. At the federal level, the Federal Trade Commission (FTC) is the primary body, enforcing broad consumer protection laws against deceptive advertising and unfair business practices. However, the most direct and comprehensive regulation comes from state-level agencies, typically each state's Department of Motor Vehicles (DMV) or a dedicated Motor Vehicle Board. These bodies license dealerships, oversee salesperson conduct, and handle consumer complaints.

The FTC's authority is grounded in rules like the Used Car Rule, which mandates that dealers display a Buyer's Guide on used vehicles. This guide is a legally binding document that spells out whether the car comes with a warranty or is sold "as-is." At the state level, regulations can vary significantly but generally cover everything from advertising truthfulness and odometer fraud to specific contract requirements and the handling of vehicle titles.

Understanding this regulatory framework is crucial for consumers. If you have a dispute with a dealership, your first step is typically to file a complaint with your state's DMV or consumer protection office. For issues involving widespread deceptive practices, the FTC may take action. The key is that while federal laws set a baseline, your state's laws provide the most specific protections.

Regulatory Body	Level of Authority	Key Areas of Focus	Example Actions
Federal Trade Commission (FTC)	Federal	Deceptive advertising, unfair practices, financing	Enforcing the Used Car Rule, penalizing false "final price" ads
State DMV / Motor Vehicle Board	State	Dealer & salesperson licensing, consumer complaints, title fraud	Suspending a dealer's license for odometer tampering
Consumer Financial Protection Bureau (CFPB)	Federal	Auto financing, lending discrimination, loan servicing	Penalizing lenders for illegal fees or discriminatory loan terms
State Attorney General's Office	State	Enforcing state consumer protection laws	Suing dealerships for "yo-yo financing" scams
Better Business Bureau (BBB)	Non-profit, Private	Business reviews, mediating customer complaints	Publishing complaint histories and assisting in dispute resolution

[Ellen]

Honestly, most of the rules come from your own state. The big one is always the DMV or a similar office. They're the ones who give the dealership its license to operate. If a dealer screws up bad enough—like lying on paperwork or selling a car with a rolled-back odometer—the state can yank that license. That's your real leverage. The feds are more for the huge, nationwide scams you hear about on the news. For your everyday problem, start with a complaint to your state's consumer protection division.

[ONicole]

From my experience, it's a two-layer system. The FTC handles the broad-strokes stuff, making sure ads aren't blatantly false. But the nitty-gritty—like how many days a dealer has to get you the title—is all state law. Before you buy, look up your state's attorney general website. They often have plain-English guides on your rights when buying a car. Knowing the specific rules for your area is the best defense against shady tactics.