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FTC Buyer Guides Rule Change (Update)

FTC Buyer Guides Rule Change (Update)

An update to the article, “Avoid Devastating Fines- FTC Used Car Buyers Guide Compliance”, the Federal Trade Commission (FTC) recently announced final amendments updating the Used Car Rule by revising the Buyer’s Guide that must be displayed on a used vehicle before that vehicle is displayed for sale. The amended rule is effective January 27, 2017. These final amendments follow an 8-year regulatory review process. The new rule permits dealers to use their remaining, existing stock of Buyers Guides for one year after the effective date of the amended rule—until January 27, 2018.

The revised Buyers Guide contains a number of changes, many of which were sought by NADA to help dealers. It contains a method for disclosing “certified” and other warranties that does not exist on the current Buyers Guide. It also allows dealers to disclose (if they choose) that the manufacturer’s warranty has not expired on certain components of a vehicle.

Revisions to the Used Car Buyers Guide include the following:

  • Changing the description of an “As Is” sale;
  • Placing boxes on the front of the Buyers Guide that dealers can check to indicate whether a vehicle is covered by a third-party warranty and whether a service contract may be available;
  • Providing a box that dealers can check to indicate that an unexpired manufacturer’s warranty applies;
  • Adding air bags and catalytic converters to the Buyers Guide’s list of major defects that may occur in used vehicles;
  • Adding a statement that directs consumers to obtain a vehicle history report and to check for open recalls.

The statement also instructs consumers to visit, ftc.gov/usedcars for information on how to obtain a vehicle history report; and safercar.gov to check for open safety recalls. An additional statement in Spanish, to the English-language Buyers Guide, advises Spanish speaking consumers to ask for the Buyers Guide in Spanish if the dealer is conducting the sale in Spanish.

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