Published: March 2013

FTC’s New Car Rule benefits used car dealers and hurts consumers

Consumer Action joins advocates in denouncing the FTC's Used Car Rule. The FTC has disregarded all the major recommendations made by consumer groups and state attorneys general, and instead proposes to make an antiquated, bad rule even worse. The people who will benefit from the FTC's proposed rule are unscrupulous auto dealers, and the people who will be hurt are used car buyers.

The Federal Trade Commission's (FTC) existing rule from 1985 shields unscrupulous used car dealers with its "As Is" definition and allows dealers to hide crucial information from buyers. The New Car Rule is based on out of date information and  threatens to undermine an entire body of auto fraud law that has developed at the state level, that is far more protective of used car buyers than the federal legislation.

Instead of the proposed rule, Consumer Action and advocates propose the FTC require delears to provide more detailed information on automobiles' complete disclosures and warranties, provide a complete translation of buying guides, inspect used vehicles before selling them, and provide consumers with written disclosures of any known defects. These steps will ensure better protection of used car buyers.

Lead Organization

Consumers for Auto Reliability and Safety (CARS)

Other Organizations

Arizona Consumers Council Foundation | Chicago Consumer Coalition | Consumer Assistance Council | Consumer Federation of America | Consumer Federation of California | Consumer Federation of the Southeast | Consumer Action | Consumers for Auto Reliability and Safety | Maryland Consumer Rights Coalition | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low-Income clients) | U.S. Public Interest Research Group | Virginia Citizens Consumer Council | Watsonville Law Center

More Information

For more information, please visit CARS' website.

Download PDF

FTC’s New Car Rule benefits used car dealers and hurts consumers   (FTCUsedCarRuleConsumerGroupComments.pdf)

 
 

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