A Changing Landscape: Why the Automotive Industry Must Stay Engaged
November 2026 | From the Executive Director
Utah Automotive Alliance
As we approach the end of 2026, Utah's automotive industry finds itself at an important crossroads. Between the recent elections, increased regulatory attention on dealership advertising practices, and the approaching 2027 Utah Legislative Session, there are several developments that deserve the attention of every automotive dealer in our state.
For many dealers, the day-to-day demands of operating a business leave little time to follow political developments or regulatory changes. Between managing inventory, assisting customers, securing financing, and maintaining profitability, there is certainly no shortage of responsibilities. However, the decisions being made in Washington, D.C., and at the Utah State Capitol can have a significant impact on how dealerships operate, what they are required to disclose, and ultimately, their ability to remain competitive.
This is precisely why the Utah Automotive Alliance (UAA) exists. Our responsibility is to represent the interests of Utah's automotive dealers, provide timely information, and advocate for a fair and reasonable regulatory environment that protects consumers while allowing dealerships to operate successfully.
Election Results Bring Changes to Utah's Political Landscape
The November 3 general election has brought notable changes to Utah's political landscape. While Republicans are expected to maintain control of both chambers of the Utah Legislature, preliminary election results indicate significant Democratic gains in the House of Representatives, potentially ending the Republican supermajority that has existed for decades.
As of this writing, several legislative races remain close, and final results have not yet been certified. Nevertheless, it is apparent that the Legislature convening in January will look considerably different from the one that concluded its work earlier this year.
For Utah's automotive industry, these changes are important for several reasons.
First, the election of new legislators means there will be individuals entering office who may have limited familiarity with the automotive retail industry. Many may not fully understand the differences between independent and franchise dealerships, the complexities of vehicle financing, the requirements associated with title and registration processing, or the extensive state and federal regulations that already govern dealership operations.
Second, changes in legislative membership and leadership can influence which policy proposals receive attention and how legislation moves through the process. Issues that may not have advanced in previous sessions could receive renewed consideration, while existing relationships and legislative priorities may shift.
Finally, a Legislature with a different political balance may require greater collaboration and bipartisan support on certain issues. For UAA, this reinforces the importance of building relationships with legislators from both political parties.
Our approach has always been to focus on good public policy rather than partisan politics. Regardless of party affiliation, legislators need accurate information about how proposed laws affect dealerships, employees, consumers, and the broader Utah economy.
As an association, we have an opportunity and a responsibility to help educate newly elected lawmakers about our industry before important legislative decisions are made.
Advertising Regulations: A Renewed Focus on Transparency
One of the most significant regulatory developments affecting automotive dealers this year has been the Federal Trade Commission's renewed emphasis on transparent vehicle pricing and advertising practices.
In February 2026, the FTC formally withdrew its previously adopted Combating Auto Retail Scams (CARS) Rule following a federal court decision. While some dealers may have viewed the withdrawal as a reduction in regulatory requirements, it is important to understand that the FTC's authority to pursue deceptive or unfair advertising practices under existing federal law remains in place.
In March, the FTC sent warning letters to 97 automobile dealership groups nationwide, emphasizing that advertised vehicle prices must accurately reflect the prices consumers can actually pay, including mandatory dealer-imposed fees.
The FTC followed this action in September with additional guidance addressing automobile pricing transparency. Among the issues highlighted were dealer documentary fees, conditional rebates, financing-related discounts, mandatory add-on products, and the presentation of prices in online and traditional advertising.
Of particular importance to Utah dealers is the FTC's position that mandatory dealer documentary fees must be included in the advertised vehicle price. The agency has also made clear that advertised prices should not be based on discounts or incentives that are unavailable to all consumers unless the generally available purchase price is prominently disclosed.
These expectations apply across dealership websites, third-party vehicle listings, social media, print advertisements, and other marketing communications.
For independent dealers, this creates additional considerations when working with advertising vendors, inventory management platforms, and third-party listing services. Dealers should carefully review how vehicle prices are displayed and ensure their advertisements accurately represent the terms under which vehicles are offered.
At UAA, we recognize the importance of consumer transparency and honest advertising. Consumers should have confidence in the information dealerships provide, and dealers who operate responsibly should not be placed at a competitive disadvantage by businesses using misleading advertising practices.
At the same time, regulations and enforcement expectations should be clear, practical, and consistently applied. Dealers should have a reasonable understanding of their obligations without having to navigate conflicting interpretations or unnecessary administrative burdens.
We encourage every dealer to review their advertising practices and become familiar with the FTC's recent guidance. This is an area where proactive compliance can help prevent costly disputes, enforcement actions, and damage to a dealership's reputation.
Preparing for the 2027 Utah Legislative Session
The Utah Legislature will convene for its 2027 General Session on January 19, with the session scheduled to conclude on March 5.
Although January may seem some distance away, much of the important work surrounding legislation begins months before lawmakers formally convene.
Legislators are already discussing potential bills, working with constituents, and identifying priorities for the upcoming session. For industry associations like UAA, November and December provide a valuable opportunity to engage with lawmakers, review potential proposals, and communicate concerns before legislation is finalized.
Several issues could be particularly relevant to Utah's automotive industry.
Consumer protection and vehicle sales requirements. Discussions surrounding consumer rights, vehicle warranties, and potential changes to vehicle return or rescission policies deserve careful consideration. While protecting consumers is an important objective, legislation must also recognize the realities of used vehicle sales, including vehicle condition, financing arrangements, trade-ins, and the responsibilities of both buyers and sellers.
Dealer education and licensing requirements. Utah currently requires continuing education for licensed dealers, and there may be opportunities to evaluate whether existing requirements adequately address today's increasingly complex regulatory environment. Any changes should emphasize meaningful education, accessibility, and practical compliance rather than simply adding administrative obligations.
Title and registration procedures. Dealerships continue to depend on efficient and consistent processes involving the Utah State Tax Commission and the Division of Motor Vehicles. Requirements involving documentation, vehicle identification inspections, electronic processing, and registration procedures can directly affect dealership efficiency and customer satisfaction. UAA will continue advocating for practical improvements that reduce unnecessary delays and burdens.
Regulatory compliance and administrative costs. As new requirements are considered, policymakers must understand the cumulative impact that regulations have on small businesses. Even changes that appear relatively minor can create additional expenses, training requirements, software modifications, and administrative responsibilities for dealerships.
These are areas UAA intends to monitor and evaluate as legislative proposals develop. Not every issue will necessarily result in legislation, but each represents an area where dealer input can help shape productive policy discussions.
Your Experience Is Our Strongest Advocacy Tool
One of the most valuable resources UAA has is the collective experience of its members.
When we meet with legislators, we can explain the potential effects of proposed legislation and provide industry perspectives. However, there is often nothing more persuasive than a dealer sharing a real-world example of how a particular requirement affects their business.
A dealership owner explaining the challenges of processing titles, managing vehicle warranties, or complying with advertising requirements can provide insight that lawmakers may not otherwise receive.
As we prepare for the upcoming legislative session, I encourage members to share their concerns, suggestions, and experiences with UAA.
If there is a state law or administrative requirement that creates unnecessary challenges for your dealership, we want to hear about it. If you have ideas for improving the licensing process, reducing paperwork, or strengthening the industry, please share them.
Equally important, we encourage dealers to develop relationships with their local legislators. Invite them to visit your dealership. Explain how your business contributes to the community, provides employment opportunities, generates tax revenue, and helps Utah residents meet their transportation needs.
Advocacy is most effective when relationships are established before a controversial bill is introduced or a difficult vote takes place.
The Value of a Strong Industry Association
The automotive industry faces challenges that no individual dealership can effectively address alone.
Whether the issue involves federal advertising enforcement, state legislation, regulatory interpretation, or administrative procedures, a unified industry voice carries considerably more weight than individual businesses working independently.
UAA provides that collective voice.
Our work extends beyond monitoring legislation. We seek to keep dealers informed, promote professional business practices, encourage regulatory compliance, and establish productive relationships with the agencies and elected officials whose decisions affect our industry.
However, the strength of any association ultimately depends on the involvement and support of its members.
Membership is not simply about receiving information or accessing services. It is an investment in the long-term future of the automotive industry in Utah.
The more engaged our members become, the more effectively we can identify emerging issues, communicate with policymakers, and advocate for solutions that benefit the industry as a whole.
Looking Ahead
As we close out 2026, I remain optimistic about the future of Utah's automotive industry.
Our dealers are resilient, entrepreneurial, and accustomed to adapting to changing market conditions. They understand the importance of customer service, responsible business practices, and maintaining the trust of the communities they serve.
The months ahead will undoubtedly bring additional changes. A newly elected Legislature will begin its work, federal regulators will continue examining automotive advertising and sales practices, and dealerships will face the ongoing challenge of balancing compliance requirements with the demands of running successful businesses.
Through it all, the Utah Automotive Alliance will continue working to ensure that the perspectives and concerns of Utah's automotive dealers are represented.
I encourage you to stay informed, remain involved, and take advantage of the opportunities available through UAA. Together, we can help shape a regulatory and legislative environment that supports responsible dealerships, protects consumers, and allows our industry to thrive.
Thank you for your continued support of the Utah Automotive Alliance and for the important role you play in Utah's economy and communities.
Adam Jones
Executive Director
Utah Automotive Alliance