FTC Asks for Public Input on Proposed Used Car Rule Changes
The Federal Trade Commission is considering changing the Used Car Buyers Guide and is turning to the general public for input.
The Buyers Guide is required under the Used Car Rule, which goes by the formal name of the Used Motor Vehicle Trade Regulation Rule.
Under this rule — which has been effective since 1985 — dealers put have to put a window sticker (i.e. a Buyers Guide) on their lots' used vehicles.
“The Buyers Guide discloses whether the dealer offers a warranty and, if so, its terms and conditions, including the duration of the coverage, the percentage of total repair costs the dealer will pay, and which vehicle systems the warranty covers,” the FTC explained in a press release. “In states that do not permit sales of used cars ‘as is,’ or without warranties, dealers must display an alternative version of the Buyers Guide.”
After reviewing public comments it generated on the Used Car Rule, the FTC has found “that the Rule continues to benefit consumers and will be retained.”
So now, the Commission wants public input on changes to the Rule that it contends “would empower consumers without adding burdens to businesses.”
Among the proposed are the following, as listed by the FTC:
—Adding a statement to the Buyers Guide encouraging consumers to seek vehicle history information and directing consumers to an FTC website for more information about vehicle histories
—Adding a statement in Spanish to the Buyers Guide directing Spanish-speaking consumers to ask for a copy in Spanish, if they desire
—Adding catalytic converters and airbags to the List of Systems on the back of the Buyers Guide; and placing boxes on the back of the Buyers Guide where dealers will have the option to indicate whether (1) the manufacturer’s warranty still applies; (2) the manufacturer’s used vehicle warranty, such as a manufacturer’s certified used car warranty, applies; or (3) some other used vehicle warranty applies
The FTC went on to note other pieces of the proposal, which can be found here.
In other news, the FTC said last week it has published a change to the Red Flags Rule. For more on this issue, stay tuned to the SubPrime News Update e-newsletter or go to www.subprimenews.com.