The Federal Trade Commission published revisions to its Used Car Rule on November 18, 2016. The final rule takes effect January 27, 2017. This November 20 account is weekend context, not the date of the agency’s action. The changes concern the Buyers Guide’s disclosures, including warranties, service contracts, vehicle-history information and a Spanish-language notice. [2016-27694]

The distinction between the proposed and final history-report language is important. In November 2014, the FTC proposed requiring dealers to mark whether they had obtained a report and, if so, provide a copy to consumers requesting it. That proposal did not require obtaining a report in the first place. It was a proposed disclosure-and-access requirement, not a universal purchase obligation. [2016-27694][2014-28000]

The final guide instead recommends that consumers obtain a vehicle-history report and points to FTC information about reports and safety recalls. It also changes the explanation of a sale without dealer warranty and adds boxes for additional coverage. Neither the advice about reports nor the revised boxes establishes that a particular vehicle is free of defects or covered by a warranty. [2016-27694]

Dealers may use remaining stocks of the old guide until January 27, 2018. Those choosing that option and disclosing a non-dealer warranty must add the specified applicable statements. Thus effectiveness and replacement of every existing form are not identical events. The earlier proposal and final text document a single FTC rulemaking process; they do not independently measure whether shoppers subsequently understood the disclosures better. [2016-27694][2014-28000]

Source documents

  1. Used Motor Vehicle Trade Regulation Rulehttps://www.govinfo.gov/content/pkg/FR-2016-11-18/html/2016-27694.htm
  2. Used Motor Vehicle Trade Regulation Rulehttps://www.govinfo.gov/content/pkg/FR-2014-11-28/html/2014-28000.htm