Normal
0
false
false
false
EN-US
X-NONE
X-NONE

WASHINGTON, D.C. — The Federal Trade Commission recently completed
its systematic review of the Cooling-Off Rule and determined that no changes to
the rule are warranted that would have impacted dealers.

In making this determination, the National Automobile
Dealers Association indicated the FTC rejected several proposed changes to the
rule that would have affected dealers, including a proposal to expand the
rule's scope to apply to the sale of used vehicles at a dealer's premises.

The only adjustment FTC officials are considering is potentially
increasing the monetary threshold at which the rule applies.

NADA explained the Cooling-Off Rule requires sellers who are
engaged in door-to-door sales of consumer goods or services with a purchase
price of $25 or more to provide the buyer with certain oral and written disclosures
regarding the buyer's right to cancel the contract within three business days
from the date of the transaction.

Door-to-door sales include those made at a place other than
the seller's place of business.

However, the rule does not apply to "sellers of automobiles,
vans, trucks or other motor vehicles sold at auctions, tent sales or other
temporary places of business, provided that the seller is a seller of vehicles
with a permanent place of business," FTC officials said.

The FTC's sole proposed change to the rule would increase
the threshold at which the rule applies from $25 to $130 to account for
inflation that has occurred since the FTC first issued the rule in 1972.


/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:”Times New Roman”;
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}