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Thursday, August 22, 2019

FTC finalizes amendments to Used Car Rule

By Mark Iandolo | Nov 18, 2016

WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced Nov. 10 that it has made final amendments to its Used Car Rule.


The FTC has been seeking public comment on the changes it has proposed to the rule, formerly known as the Used Motor Vehicle Trade Regulation Rule. The rule mandates car dealers display a window sticker, or “buyers guide,” on used cars offered for sale that disclose whether the car is being sold “as is” – i.e., without a warranty – or with a warranty. If a warranty is included with the sales package, the guide must clearly lay out all terms and conditions, including the duration of coverage, total repair costs the dealer would pay, and the vehicle systems the warrant covers.


Revisions to the rule include – among other things – changing the description of an “as is” sale, adding a check box for third party warranties, adding a statement that directs consumers to where they can obtain a vehicle history, and adding a statement in Spanish advising Spanish-speaking consumers on how to ask for a Spanish buyers guide.


The FTC voted 3-0 to publish the notice of final rule in the Federal Register.

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U.S. Federal Trade Commission