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FTC Proposes Modifications to Used Car Rule

The FTC is proposing changes to the Used Car Buyers Guide. But the commission made clear it is not looking to burden dealers with its proposed modifications.

by Staff
December 6, 2012
2 min to read


WASHINGTON, D.C. — The Federal Trade Commission is seeking public comment on proposed changes to the Used Car Buyers Guide required by the agency’s Used Car Rule.

The FTC is also issuing a final rule that makes technical corrections and revises the Spanish translation of the Buyers Guide. The Commission last reviewed and amended the Used Car Rule in 1995.

The Used Car Rule, formally known as the Used Motor Vehicle Trade Regulation Rule, has been in effect since 1985 and requires car dealers to display a window sticker, known as a Buyers Guide, on the used cars they offer for sale.

The FTC has sought public comment on the Used Car Rule, and based on a review of the comments, has concluded that the rule continues to benefit consumers and will be retained. The commission is now seeking comments on potential revisions to the rule that would empower consumers without adding burdens to businesses. Those revisions include:

• 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.

• Adding catalytic converters and airbags to the list of systems on the back of the Buyers Guide.

• Placing boxes on the back of the Buyers Guide where dealers will have the option to indicate whether the manufacturer’s warranty still applies; the manufacturer’s used-vehicle warranty, such as a manufacturer’s certified used-car warranty, applies; or some other used-vehicle warranty applies.

The proposed changes to the Buyers Guide also makes some minor changes to improve readability.

In addition to the proposed changes to the Rule, the FTC is also announcing a new final rule that makes minor corrections to the Spanish translation of the Buyers Guide. The Used Car Rule requires dealers to use Spanish-language versions of the Buyers Guide and to make related contract disclosures in Spanish when they conduct sales in Spanish. The revised Spanish-language versions will take effect on Feb. 11, 2013, but dealers may use up any remaining supplies of the current Buyers Guide. The revised Spanish translations can be found on the FTC’s website at business.ftc.gov.

The commission’s vote approving the final agency action notice and notice of proposed rulemaking was 5-0. Those interested in submitting comment can file their comment electronically or by mail. To comment by mail, write “Used Car Rule Regulatory Review, Project No. P087604” on comments and send them to Federal Trade Commission, Office of the Secretary, Room H-113 (Annex T), 600 Pennsylvania Avenue, N.W., Washington, DC 20580.

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