So we recently went to the FTC and 12 other law enforcement agencies to purchase a used car. We visited 94 dealers in 20 cities across the country. Yes, we’ve seen some low-mileage cream puffs, but that’s not what we’re in the market for. We would like to know whether dealers are displaying the revised buyer’s guide as required on January 28, 2018. It turns out to be interesting.
Under the Federal Trade Commission’s used car rules, dealers are required to display a Buyer’s Guide in the windows of used cars. Consumers consult this guide for important information to consider when shopping for a used car. After receiving feedback from the public, the FTC announced revisions to the “Used Car Rule” in November 2016, and set January 28, 2018 as the effective date. Dealers must display the revised “Buyers Rule” on all used cars they sell. guide”. Among other things, the revised Buyer’s Guide:
- Adds a box that dealers can check to indicate whether the vehicle is covered by a third-party warranty and whether a service contract is available;
- Add a box to indicate that an unexpired manufacturer’s warranty applies;
- Add airbags and catalytic converters to the list of major defects that can occur in used cars;
- Tell consumers how to obtain a vehicle history report and check for open recalls; and
- Includes a Spanish-language statement in the English-language buyer’s guide advising Spanish-speaking consumers to request the Spanish-language buyer’s guide when dealers sell in Spanish.
Compliance investigations were conducted between April and June 2018 at dealerships in California, Florida, Illinois, New York, Ohio, Texas and Washington. Inspectors found the Buyer’s Guide in 70 percent of the more than 2,300 vehicles inspected.In almost half of the cases this is correct Revise Buyer’s Guide. In other cases, it’s an older version. Of the 94 dealer inspectors visited, 33 dealers had more than half of their vehicles equipped with the revised Buyer’s Guide. Thanks to 14 dealers for providing revised guidelines for all of their used vehicles.
FTC staff sent letters to each dealer detailing the inspection results and providing resources to help them comply with the revised rule. What’s next? In the coming weeks, inspectors will return to dealers that do not display the revised Buyer’s Guide. With potential civil penalties of $41,484 per violation, we’d like to see the new Buyer’s Guide on the windows of all used cars.
Compliance doesn’t have to be complicated. Dealers can find information on the Federal Trade Commission’s Automotive Industry Portal:
For more information, read Answering Dealers’ Questions About the Revised Used Car Rules and Dealers’ Guide to the Used Car Rules.
