2026-14038NoticeWallet

FTC Keeps Car-Dispute Paperwork Rules Alive Another Term

Published Date: 7/13/2026

Notice

Summary

The Federal Trade Commission wants to keep its Informal Dispute Settlement Rules going for three more years and is asking the public to share their thoughts by August 12, 2026. This affects car makers and others who use these dispute rules, with an estimated yearly cost of about $340,000 and nearly 12,000 hours spent on paperwork. No big changes, just a smooth extension to keep things running.

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Three‑Year Extension Keeps Compliance Costs

If you run or operate an informal dispute settlement mechanism or are a warrantor (including automobile manufacturers) that uses an IDSM, the FTC proposes to extend the information‑collection clearance for three more years. The FTC estimates annual burden of 11,738 hours, annual labor costs of $339,836, and annual capital or other non‑labor costs of $425,987; the current clearance expires July 31, 2026 and comments are due by August 12, 2026.

Minimum Standards for Warranty IDSMs

The Rule requires any informal dispute settlement mechanism (IDSM) that is incorporated into a written consumer product warranty with a prior‑resort requirement to meet minimum standards for structure (funding, staffing, neutrality), staff or decision‑maker qualifications, procedures for resolving disputes (notification, investigation, time limits for decisions, follow‑up), recordkeeping, and annual audits. IDSMs must establish written operating procedures and provide copies of those procedures upon request.

Rule Applies Only If Warranty Requires IDSM

The Dispute Settlement Rule applies only to firms that choose to require consumers to use an IDSM as a prior condition before pursuing court remedies; a warrantor may avoid the Rule's obligations by not including a prior‑resort requirement in its warranty. The FTC reiterates that neither the Rule nor the Magnuson‑Moss Warranty Act requires warrantors to set up an IDSM.

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Key Dates

Published Date
Comments Due
7/13/2026
8/12/2026

Department and Agencies

Department
Independent Agency
Agency
Federal Trade Commission
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