The price on a used car does not explain who will pay if something goes wrong. The FTC’s final rule published November 18, 2016 changes the Buyers Guide to make additional warranty and service-contract information more prominent. Our market reading is that the relevant mechanism is improved visibility of terms, not an official endorsement of any car’s quality. [2016-27694]
Language is another part of that information problem. The English guide gains a Spanish statement advising consumers to request the guide in Spanish when the dealer conducts the sale in Spanish. The final revision also clarifies the description of selling without a dealer warranty. These provisions concern how terms are communicated; they do not create identical coverage for every buyer or vehicle. [2016-27694]
The November 2014 supplemental proposal used a different mechanism for history reports: dealers who had already obtained one would indicate that fact and provide a copy upon request. It would not require report acquisition. The final guide recommends that consumers obtain a report and directs them to FTC information. A shopper comparing dealers should not mistake the discarded proposal for a final report-access mandate. [2016-27694][2014-28000]
The January 27, 2017 effective date is accompanied by a limited old-stock transition until January 27, 2018, with required additions where dealers elect to disclose non-dealer warranties. This November 20 retrospective draws on one proposal-to-final FTC chain. It identifies an information mechanism, not independent evidence of better competition, lower repair bills or safer cars. Those outcomes cannot be inferred from new boxes on a form. [2016-27694][2014-28000]
Source documents
- Used Motor Vehicle Trade Regulation Rulehttps://www.govinfo.gov/content/pkg/FR-2016-11-18/html/2016-27694.htm
- Used Motor Vehicle Trade Regulation Rulehttps://www.govinfo.gov/content/pkg/FR-2014-11-28/html/2014-28000.htm