The Federal Trade Commission’s (FTC) Used Car Buyers Guide, formally known as the Used Motor Vehicle Trade Regulation Rules, was enacted in 1985 as a way to protect consumers against used car fraud. It requires dealers to display stickers in the window of all used vehicles for sale, giving information about whether the vehicle is covered by a warranty and who will pay for repairs. (These regulation do not apply to private sales.)

The Commission is now looking for consumers comments on potential revisions to the rules that they feel would empower consumers without burdening businesses. These rules include:

• Instead of requiring dealers to provide vehicle histories, the F.T.C. is proposing that the buyer be responsible for obtaining the history report via the FTC database. (In California, dealers are required to check the new federally backed National Motor Vehicle Title Information System and use a red warning sticker if there is a serious problem. Many dealers objected to this rule saying they worried about the accuracy of history reports and potential legal liability if they provide incomplete information to buyers.)
• Adding a statement in Spanish to the Buyers Guide directing Spanish-speaking consumers to ask for a copy in Spanish, if they desire;
• Catalytic converters and airbags be added to the list of systems on the back of the Buyers Guide.
• Placing boxes on the back of the Buyers Guide where dealers will have the option to indicate whether:
  • the manufacturer’s warranty still applies;
  • the manufacturer’s used vehicle warranty, such as a manufacturer’s certified used car warranty, applies; or
  • some other used vehicle warranty applies.
• The Buyers Guide also makes some minor changes to improve its readability.

The proposed changes to the guide have been criticized by consumer groups including the Consumer Federation of America, the National Consumer Law Center, the United States Public Interest Research Group, Consumers for Auto Reliability and Safety, and the attorney generals of 22 states. They say the changes could result in consumers’ being misled about their legal rights or not learning the full history of a car damaged in a flood or a crash. They said that one proposed change, involving vehicles being sold “as is” without any warranty coverage, was so poorly worded that they would prefer to scrap the entire revised Buyers Guide. All comments received will be posted at www.ftc.gov/os/publiccomments.shtm.