A used-car shopper needs to distinguish the condition of a vehicle from the promises attached to its sale. The FTC’s final Used Car Rule revision, published November 18, 2016, changes the Buyers Guide to make warranty information more explicit. This Sunday retrospective concerns that Friday publication, not a new November 20 announcement. [2016-27694]

The revised guide clarifies a sale without a dealer warranty and adds front-page boxes for additional warranty and service-contract coverage. It also adds airbags and catalytic converters to the major-defect list. These are disclosure changes: listing a possible defect does not establish that the particular car has been inspected, is safe or carries coverage for that defect. [2016-27694]

The November 2014 supplemental proposal had contemplated another information route. Dealers would indicate whether they had obtained a vehicle-history report and provide it on request if they had one. It did not require them to acquire reports. The final approach instead recommends that consumers obtain a report and directs them to FTC information about reports and safety recalls. Calling the earlier proposal a final dealer-report duty would misstate the protection. [2016-27694][2014-28000]

The rule takes effect January 27, 2017, with a transition allowing remaining old guide stock until January 27, 2018, subject to specified additions when dealers choose to disclose non-dealer warranties. Our public-interest reading is that clearer information can support questions, but cannot answer them all. Proposal and final text are one FTC evidence chain, not proof of improved purchases or fewer unsafe vehicles. [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