FTC Proposes Modifications to Used Car Rule
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 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. 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.
FTC is seeking public comment on proposed changes to the Used Car Buyers Guide required by the agency’s Used Car Rule. The Commission is also issuing a final rule that makes technical corrections and revises the Spanish translation of the Buyers Guide. The Buyers Guide gives consumers critical information about who will pay for repairs if something goes wrong with the car they buy. The Commission last reviewed and amended the Used Car Rule in 1995.
- 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.