Used Motor Vehicle Trade Regulation Rule, 42285-42293 [E8-16634]
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Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Proposed Rules
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Operations Support Group, 1601 Lind
Avenue, SW., Renton, WA 98057.
Persons interested in being placed on
a mailing list for future NPRM’s should
contact the FAA’s Office of Rulemaking,
(202) 267–9677, for a copy of Advisory
Circular No. 11–2A, Notice of Proposed
Rulemaking Distribution System, which
describes the application procedure.
The Proposal
The FAA is proposing an amendment
to Title 14 Code of Federal Regulations
(14 CFR) part 71 by establishing Class E
airspace at the new Lake Havasu City
Airport, Lake Havasu, AZ. The Class E
airspace area for the original Lake
Havasu Airport, Lake Havasu, AZ, is
being revoked, as the airport has been
abandoned. Controlled airspace is
necessary to accommodate aircraft using
VOR/DME (GPS) SIAP at Lake Havasu
City Airport, Lake Havasu, AZ.
Class E airspace designations are
published in paragraph 6005 of FAA
Order 7400.9R, signed August 15, 2007,
and effective September 15, 2007, which
is incorporated by reference in 14 CFR
71.1. The Class E airspace designation
listed in this document will be
published subsequently in this Order.
The FAA has determined that this
proposed regulation only involves an
established body of technical
regulations for which frequent and
routine amendments are necessary to
keep them operationally current.
Therefore, this proposed regulation; (1)
Is not a ‘‘significant regulatory action’’
under Executive Order 12866; (2) is not
a ‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3)
does not warrant preparation of a
regulatory evaluation as the anticipated
impact is so minimal. Since this is a
routine matter that will only affect air
traffic procedures and air navigation, it
is certified that this proposed rule,
when promulgated, would not have a
significant economic impact on a
substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the U.S. Code. Subtitle 1,
Section 106, describes the authority for
the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more
detail the scope of the agency’s
authority. This rulemaking is
promulgated under the authority
described in Subtitle VII, Part A,
Subpart I, Section 40103. Under that
section, the FAA is charged with
prescribing regulations to assign the use
of the airspace necessary to ensure the
safety of aircraft and the efficient use of
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airspace. This regulation is within the
scope of that authority as it establishes
controlled airspace at the new Lake
Havasu City Airport, Lake Havasu, AZ
and removes airspace at the old Lake
Havasu Airport, Lake Havasu, AZ.
FEDERAL TRADE COMMISSION
List of Subjects in 14 CFR Part 71
AGENCY:
Airspace, Incorporation by reference,
Navigation (air).
The Proposed Amendment
Accordingly, pursuant to the
authority delegated to me, the Federal
Aviation Administration proposes to
amend 14 CFR part 71 as follows:
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
1. The authority citation for 14 CFR
part 71 continues to read as follows:
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
§ 71.1
[Amended]
2. The incorporation by reference in
14 CFR 71.1 of the FAA Order 7400.9R,
Airspace Designations and Reporting
Points, signed August 15, 2007, and
effective September 15, 2007, is
amended as follows:
Paragraph 6005 Class E airspace areas
extending upward from 700 feet or more
above the surface of the earth.
*
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AWP AZ E5
*
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Lake Havasu, AZ [Revoked]
*
AWP AZ E5
*
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Lake Havasu, AZ [New]
Lake Havasu City, AZ
(Lat. 34°34′16″ N., long. 114°21′30″ W.)
Chemehuevi Valley Airport, CA
(Lat. 34°31′44″ N., long. 114°25′56″ W.)
That airspace extending upward from 700
feet above the surface within a 4-mile radius
of Lake Havasu City Airport, excluding that
airspace with a 1.5-mile radius of
Chemehuevi Valley Airport. That airspace
extending upward from 1,200 feet above the
surface bounded by a line beginning at lat.
34°42′47″ N., long. 114°29′37″ W.; to lat.
34°42′47″ N., long. 114°12′00″ W.; to lat.
34°23′54″ N., long. 114°12′00″ W.; to lat.
34°18′13″ N., long. 114°32′12″ W.; thence to
the point of beginning.
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BILLING CODE 4910–13–P
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Used Motor Vehicle Trade Regulation
Rule
ACTION:
Federal Trade Commission.
Request for public comments.
SUMMARY: The Federal Trade
Commission (‘‘FTC’’ or ‘‘Commission’’)
requests public comments on its Used
Motor Vehicle Trade Regulation Rule
(‘‘Used Car Rule’’ or ‘‘Rule’’). The
Commission is soliciting the comments
as part of the FTC’s systematic review
of all current Commission regulations
and guides.
DATES: Written comments relating to the
Used Car Rule must be received by
September 19, 2008.
ADDRESSES: Interested parties are
invited to submit written comments
relating to the Used Car Rule review.
Comments should refer to ‘‘Used Car
Rule Regulatory Review, Matter No.
P087604’’ to facilitate the organization
of comments. A comment filed in paper
form should include this reference both
in the text and on the envelope, and
should be mailed or delivered to the
following address: Federal Trade
Commission/Office of the Secretary,
Room H-135 (Annex H), 600
Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. Comments
containing confidential material must be
filed in paper form, must be clearly
labeled ‘‘Confidential,’’ and must
comply with Commission Rule 4.9(c).1
The FTC is requesting that any comment
filed in paper form be sent by courier or
overnight service, if possible, because
postal mail in the Washington area and
at the Commission is subject to delay
due to heightened security precautions.
Comments filed in electronic form
should be submitted by following the
instructions on the web-based form at:
(https://secure.commentworks.com/ftcUsedCarRuleReview). To ensure that the
Commission considers an electronic
comment, you must file it on the webbased form. You may also visit https://
www.regulations.gov to read this notice,
and may file an electronic comment
through that Web site. The Commission
will consider all comments that
www.regulations.gov forwards to it.
*
Issued in Seattle, Washington, on July 9,
2008.
Kevin Nolan,
Acting Manager, Operations Support Group,
Western Service Area.
[FR Doc. E8–16520 Filed 7–18–08; 8:45 am]
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1 The comment must be accompanied by an
explicit request for confidential treatment,
including the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record.
The request will be granted or denied by the
Commission’s General Counsel, consistent with
applicable law and the public interest. See
Commission Rule 4.9(c), 16 CFR 4.9(c).
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Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Proposed Rules
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and to use in this proceeding
as appropriate. The Commission will
consider all timely and responsive
public comments that it receives,
whether filed in paper or electronic
form. Comments received will be
available to the public on the FTC Web
site, to the extent practicable, at https://
www.ftc.gov. As a matter of discretion,
the FTC makes every effort to remove
home contact information for
individuals from the public comments it
receives before placing those comments
on the FTC Web site. To read our policy
on how we handle the information you
submit - including routine uses
permitted by the Privacy Act - please
review the FTC’s privacy policy, at
https://www.ftc.gov/ftc/privacy.htm.
FOR FURTHER INFORMATION CONTACT: John
C. Hallerud, (312) 960-5615, Attorney,
Midwest Region, Federal Trade
Commission.
SUPPLEMENTARY INFORMATION:
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I. Background
The Commission promulgated the
Used Car Rule in 1984 and the Rule
became effective in 1985.2 The Used Car
Rule is intended primarily to prevent
oral misrepresentations and unfair
omissions of material facts by used car
dealers concerning warranty coverage.
To accomplish that goal, the Rule
provides a uniform method for
disclosing warranty information on a
window sticker called the ‘‘Buyers
Guide’’ that dealers are required to
display on used cars. The Rule requires
used car dealers to disclose on the
Buyers Guide whether they are offering
a used car for sale with a dealer’s
warranty and, if so, the basic terms,
including the duration of coverage, the
percentage of total repair costs to be
paid by the dealer, and the exact
systems covered by the warranty. The
Rule additionally provides that the
Buyers Guide disclosures are to be
incorporated by reference into the sales
contract, and are to govern in the event
of an inconsistency between the Buyers
Guide and the sales contract. The Rule
requires Spanish language versions of
the Buyers Guide when dealers conduct
sales in Spanish.
The Rule also requires other
disclosures that must be printed directly
on the Buyers Guide, including:
(1) A suggestion that consumers ask
the dealer if a pre-purchase inspection
is permitted;
2
49 FR 45,692 (November 19, 1984).
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(2) A warning against reliance on
spoken promises that are not confirmed
in writing; and
(3) A list of fourteen major systems of
a used motor vehicle and the major
defects that may occur in these systems.
In 1995, as part of its periodic review,
the Commission amended the Used Car
Rule.3 Specifically, the Commission
amended the Rule by: (1) adopting
several minor grammatical changes to
the Spanish language version of the
Buyers Guide; (2) permitting dealers to
display a Buyers Guide anywhere on a
used motor vehicle so long as the
Buyers Guide is displayed prominently
and both sides of it are readily readable;
and (3) allowing dealers to obtain a
consumer’s signature on the Buyers
Guide to acknowledge receipt.
The Rule provides for both English
and Spanish Buyers Guides. In the past,
Commission staff has advised dealers
who conduct substantial numbers of
sales in Spanish to display both English
and Spanish Buyers Guides.4 In
response to questions from industry, the
Commission is seeking comments on
whether the Rule should be revised to
permit dealers to use a single bilingual
Buyers Guide. The Commission is also
seeking proposals for the design of
bilingual Buyers Guides.
The reverse side of the Buyers Guide
contains a pre-printed list of fourteen
major systems and the defects that may
occur in those systems. That list has not
been changed since the Used Car Rule
was promulgated in 1984. The list was
promulgated from the rulemaking
proceeding and from information
gleaned from prior versions of the Used
Car Rule. The Commission is seeking
comments on the value of the Buyers
Guide’s pre-printed list of major systems
and defects and whether the list should
be revised or eliminated.
The Commission is also seeking
comments on how well the current
method for disclosing unexpired
manufacturer’s warranties on the Buyers
Guide is working. In connection with
that inquiry, the Commission is seeking
comments on a possible alternative
Buyers Guide to aid in disclosing
dealers’ warranties, unexpired
manufacturer’s warranties,
manufacturer’s used car warranties, and
used car warranties provided by third
parties other than the manufacturer.
Examples of Buyers Guides that
incorporate a revised method for
60 FR 62,195 (December 5, 1995).
See Staff Compliance Guidelines, 53 FR 17,660,
17,664, 17,667 (Illustration 3.10) (May 17, 1988).
The Staff Compliance Guidelines and other
information about the Used Car Rule are available
online from the Commission’s Web site at:
www.ftc.gov.
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4
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disclosing these various types of
warranties are attached to this notice as
Appendices A and B.
II. Regulatory Review of the Used Car
Rule
The Commission reviews all of its
rules and guides periodically to
examine their efficacy, costs, and
benefits; and to determine whether to
retain, modify, or rescind them. This
notice commences the Commission’s
review of the Used Car Rule.
A. General Areas of Interest for FTC
Review
As part of its review, the Commission
is seeking comment on a number of
general issues, including the continuing
need for the Used Car Rule and its
economic impact, the effect of the Rule
on deception in the used car market,
and the interaction of the Rule with
other regulations. Since the
Commission’s last revisions of the Rule
in 1995, new used car products, such as
certified used car warranties, have
become increasingly popular. The
Commission believes that this review is
important to ensure that the Rule is
appropriately responsive to any changes
in the marketplace.
B. Specific Areas of Interest for FTC
Review
Since the last revisions to the Rule in
1995, the Commission occasionally has
received informal input regarding the
efficacy of the Rule and requests for
clarification about the Rule’s
application. Some of the questions
included in this notice, therefore,
address specific issues. By including
these issues, the Commission intends to
facilitate comment, and the inclusion or
exclusion of any issue is no indication
of the Commission’s intent to make any
specific modifications to the Rule.
III. Issues for Comment
The Commission requests written
comment on any or all of the following
questions. The Commission requests
that responses to its questions be as
specific as possible, including a
reference to the question being
answered, and reference to empirical
data or other evidence wherever
available and appropriate.
A. General Issues
(1) Is there a continuing need for the
Rule? Why or why not?
(2) What benefits has the Rule
provided to consumers? What evidence
supports the asserted benefits?
(3) What modifications, if any, should
be made to the Rule to increase its
benefits to consumers?
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(a) What evidence supports the
proposed modifications?
(b) How would these modifications
affect the costs the Rule imposes on
businesses, and in particular on small
businesses?
(c) How would these modifications
affect the benefits to consumers?
(4) What impact has the Rule had on
the flow of truthful information to
consumers and on the flow of deceptive
information to consumers?
(5) What significant costs has the Rule
imposed on consumers? What evidence
supports the asserted costs?
(6) What modifications, if any, should
be made to the Rule to reduce the costs
imposed on consumers?
(a) What evidence supports the
proposed modifications?
(b) How would these modifications
affect the benefits provided by the Rule?
(7) How have the 1995 amendments to
the Rule affected purchasers of used
motor vehicles? How have the 1995
amendments to the Rule affected used
motor vehicle dealers? Please provide
any evidence that has become available
since 1995 concerning the costs,
benefits, and effectiveness of the Rule.
Does this new information indicate that
the Rule should be modified? If so, why,
and how? If not, why not?
(8) What benefits, if any, has the Rule
provided to businesses, and in
particular to small businesses? What
evidence supports the asserted benefits?
(9) What modifications, if any, should
be made to the Rule to increase its
benefits to businesses, and in particular
to small businesses?
(a) What evidence supports the
proposed modifications?
(b) How would these modifications
affect the costs the Rule impose on
businesses, and in particular on small
businesses?
(c) How would these modifications
affect the benefits to consumers?
(10) What significant costs, including
costs of compliance, has the Rule
imposed on businesses, and in
particular on small businesses? What
evidence supports the asserted costs?
(11) What modifications, if any,
should be made to the Rule to reduce
the costs imposed on businesses, and in
particular on small businesses?
(a) What evidence supports the
proposed modifications?
(b) How would these modifications
affect the benefits provided by the Rule?
(12) What evidence is available
concerning the degree of industry
compliance with the Rule? To what
extent has there been a reduction in
deceptive oral representations and
unfair omissions made by used car
dealers concerning warranty coverage
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since the Rule was issued? Please
provide any supporting evidence. Does
this evidence indicate that the Rule
should be modified? If so, why, and
how? If not, why not?
(13) What modifications, if any,
should be made to the Rule to account
for changes in relevant technology or
economic conditions? What evidence
supports the proposed modifications?
(14) Does the Rule overlap or conflict
with other federal, state, or local laws or
regulations? If so, how?
(a) What evidence supports the
asserted conflicts?
(b) With reference to the asserted
conflicts, should the Rule be modified?
If so, why, and how? If not, why not?
B. Specific Issues
(1) Should the Used Car Rule be
modified to permit used motor vehicle
dealers the option of using a Buyers
Guide that combines both the English
and Spanish language versions of the
Buyers Guide into a single bilingual
document? If not, why not? If so, why?
If so, how should bilingual Buyers
Guides be designed and formatted? How
should bilingual Buyers Guides be
designed and formatted to minimize
consumer confusion?
(a) If recommending that bilingual
Buyers Guides should be permitted,
provide as much detail as possible about
the form that the bilingual Buyers
Guides should take. Provide examples
of bilingual Buyers Guides for use in
states that permit ‘‘as is’’ sales (i.e., sales
in which implied warranties are
disclaimed) and states that prohibit ‘‘as
is’’ sales (i.e., ‘‘Implied Warranties
Only’’ sales). Indicate the type styles,
sizes, and format used in examples of
bilingual Buyers Guides that are
submitted.
(b) What benefits, if any, would
bilingual Buyers Guides provide
consumers? What evidence supports the
asserted benefits?
(c) What burdens, if any, would
bilingual Buyers Guides impose on
consumers? What evidence supports the
asserted burdens?
(d) What benefits, if any, would
bilingual Buyers Guides provide
businesses, and in particular small
businesses? What evidence supports the
asserted benefits?
(e) What burdens, if any, would
bilingual Buyers Guides impose on
businesses, and in particular small
businesses? What evidence supports the
asserted burdens?
(f) Question 8 below discusses
possible alternative Buyers Guides
intended to facilitate the disclosure of
manufacturer’s and other third-party
warranties. How would your answers to
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the preceding questions about bilingual
Buyers Guides change if the
Commission adopted a revised Buyers
Guide as described in Question 8?
(2) Should the translation of the
Buyers Guide into Spanish be revised as
described below? If so, why? If not, why
not?
(a) Should the term ‘‘dealer’’ be
translated into Spanish as
‘‘concesionario,’’ instead of
‘‘distribuidor’’ and ‘‘vendedor?’’
(b) Should the term ‘‘regardless of’’ in
the statement below the AS IS - NO
WARRANTY box on the front of the
Buyers Guide be translated into Spanish
as ‘‘independientemente de’’ instead of
‘‘sean cuales sean?’’
(c) Should the following revisions be
made to the Spanish translation of terms
used in the list of major defects in
automobile systems on the reverse side
of the Buyers Guide?
(i) Should the term ‘‘Frame-cracks’’ in
the Frame & Body section be translated
as ‘‘Grietas en el chasis,’’ instead of
‘‘Chasis-grietas?’’
(ii) Should the term ‘‘Cooling System’’
in the Cooling System section be
translated as ‘‘Sistema de enfriamiento,’’
instead of ‘‘Sistema de refrigeraci’’
(iii) Should the term ‘‘Air
conditioner’’ in the Inoperable
Accessories section be translated as
‘‘Aire acondicionado,’’ instead of
‘‘Acondicionador de aire?’’
(iv) Should the term ‘‘Defroster’’ in
the Inoperable Accessories section be
translated as ‘‘Desempaador,’’ instead of
‘‘Descarchador?’’
(v) Should the terms ‘‘Not enough
pedal reserve’’ in the Brake System
section be translated as ‘‘Distancia
insuficiente del pedal,’’ instead of
‘‘Juego insuficiente en el pedal?’’
(3) What purposes, if any, does the list
of systems and major defects that may
occur in a used motor vehicle on the
reverse side of the Buyers Guide serve?
(a) What benefits does the list provide
to consumers?
(b) What burdens does the list impose
on consumers?
(c) What benefits does the list provide
to businesses, and in particular to small
businesses?
(d) What burdens does the list impose
on businesses, and in particular on
small businesses?
(e) Should the list be retained? Why
or why not?
(f) Should the list be modified? If so,
why, and how? If not, why not?
(4) The Rule permits dealers who opt
to disclose an unexpired manufacturer’s
warranty to add the following statement
to the Buyers Guide below the FULL/
LIMITED WARRANTY boxes in the
SYSTEMS COVERED/DURATION
section:
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MANUFACTURER’S WARRANTY
STILL APPLIES. The manufacturer’s
original warranty has not expired on the
vehicle. Consult the manufacturer’s
warranty booklet for details as to
warranty coverage, service location,
etc.5
Separately and beneath that
statement, in states that permit ‘‘as is’’
sales, dealers may add:
The dealership itself assumes no
responsibility for any repairs, regardless
of any oral statements about the vehicle.
All warranty coverage comes from the
unexpired manufacture’s warranty.6
(a) What benefits, if any, does the
method permitted by the Rule for
disclosing unexpired manufacturer’s
warranties provide consumers?
(b) What burdens does the method
permitted by the Rule for disclosing
unexpired manufacturer’s warranties
impose on consumers?
(c) What benefits does the method for
disclosing unexpired manufacturer’s
warranties permitted by the Rule
provide businesses, and in particular
small businesses?
(d) What burdens does the method for
disclosing unexpired manufacturer’s
warranties permitted by the Rule
provide businesses, and in particular
small businesses?
(e) Should the current method
permitted by the Rule for disclosing
unexpired manufacturer’s warranties be
modified? If so, why, and how? If not,
why not?
(f) Should the Rule provide an option
to use a similar method for disclosing
other warranties that are included in the
price of the used vehicle, such as
manufacturer’s certified used car
warranties and warranties provided by
other third parties? If so, why, and how?
If not, why not?
(5) Should the optional statement
provided by the Rule to indicate that a
manufacturer’s warranty applies be
revised to alert consumers to check the
warranty booklet for the expiration date
of the manufacturer’s warranty by
stating: ‘‘Consult the manufacturer’s
warranty booklet for details as to
warranty coverage, expiration, service
location, etc?’’ Why or why not?
(6) Should the Rule require dealers to
indicate whether a manufacturer’s
warranty applies and provide
information about the scope of that
coverage? Why or why not? Should
disclosure of manufacturer’s warranties
be optional as the Rule currently
provides? Why or why not?
(7) Is checking the AS IS - NO
WARRANTY box to indicate that the
16 C.F.R. § 455.2(b)(2)(v).
Staff Compliance Guidelines, 53 Fed. Reg.
17,660 at 17,663 (May 17, 1988).
5
6
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dealer is not obligated to perform
warranty service clear and
understandable to consumers? Why or
why not? Does checking the AS IS - NO
WARRANTY box confuse consumers
about whether other warranty or service
coverage, such as a manufacturer’s
warranty, applies? Why or why not?
How could the Buyers Guide be
redesigned to prevent consumer
confusion about the meaning of the ‘‘as
is’’ disclosure?
(8) Examples of revised Buyers Guides
that provide a different method to
disclose manufacturer’s warranties and
third-party warranties that are included
in the price of the used car are attached
as Appendices A and B. Appendix A is
designed for use in states that permit
dealers to sell used cars ‘‘as is,’’ i.e.,
without any warranty from the dealer.
Appendix B is designed for use in states
that prohibit ‘‘as is’’ sales.
The Buyers Guide attached as
Appendix A states:
b ‘‘AS IS’’ - NO DEALER
WARRANTY THE DEALER WILL NOT
PAY ANY COSTS FOR ANY REPAIRS.
The dealer assumes no responsibility for
any repairs regardless of any oral
statements about the vehicle.
If a dealer chooses to use a Buyers
Guide like Appendix A and does not
offer its own warranty, the dealer would
check the box to indicate that the car is
being offered ‘‘AS IS’’- NO DEALER
WARRANTY.
If state law limits or prohibits ‘‘as is’’
sales of vehicles or the dealer chooses
to offer the vehicle with implied
warranties only when offering a car for
sale in a state that permits ‘‘as is’’ sales,
the following should be substituted for
‘‘AS IS’’ - NO DEALER WARRANTY,
and its accompanying language:
b IMPLIED WARRANTIES ONLY
This means that the dealer does not
make any specific promises to fix things
that need repair when you buy the
vehicle or after the time of sale. But,
State law ‘‘implied warranties’’ may
give you some rights to have the dealer
take care of serious problems that were
not apparent when you bought the
vehicle.
Appendix B is a Buyers Guide that
uses the above disclosure to indicate
that the dealer is offering implied
warranties only.
If a dealer chooses to use a Buyers
Guide like Appendix A or B and the
dealership provides its own used car
warranty, the dealer would check the
DEALER WARRANTY box, indicate
whether the warranty is full or limited,
and identify the percentage of labor and
parts that the dealer will pay for repairs:
b DEALER WARRANTY
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b FULL b LIMITED WARRANTY.
The dealer will pay _ % of the labor and
__ % of the parts for the covered
systems that fail during the warranty
period. Ask the dealer for a copy of the
warranty document for a full
explanation of warranty coverage,
exclusions, and the dealer’s repair
obligations. Under state law, ‘‘implied
warranties’’ may give you even more
rights.
Immediately beneath this section, the
dealer would indicate the Systems
Covered and the Duration of coverage
for the identified systems:
SYSTEMS COVERED: DURATION:
_____________________________________
If the dealer does not provide its own
warranty and state law permits the
dealer to sell used cars ‘‘as is,’’ in the
space provided for the SYSTEMS
COVERED/DURATION, the dealer may
fill in (or pre-print or use a rubber
stamp) the following statement: ‘‘The
dealership itself assumes no
responsibility for any repairs, regardless
of any oral statements about the vehicle.
All warranty coverage comes from the
unexpired manufacturer’s warranty,
manufacturer’s used car warranty, or
other used car warranty indicated
below.’’
The Buyers Guide would have
additional boxes below the SYSTEMS
COVERED/DURATION section where
the dealer could indicate whether the
dealer is offering a used car with a
manufacturer’s warranty or other thirdparty warranty. If a dealer chooses to
disclose manufacturer’s warranties and
third-party warranties using Appendix
A or B, dealers would check the
appropriate boxes to indicate the types
of warranties that are provided as part
of the sales price of the car.
b NON-DEALER WARRANTIES
b MANUFACTURER’S WARRANTY
STILL APPLIES.
The manufacturer’s original warranty
has not expired on the vehicle.
b MANUFACTURER’S USED CAR
WARRANTY APPLIES.
b OTHER USED CAR WARRANTY
APPLIES.
Consult the warranty booklet for
details as to warranty contract coverage,
expiration, service location, etc.
b NO INFORMATION PROVIDED.
The dealer provides no information
about other warranties that may apply.
The Rule’s SERVICE CONTRACT box
and corresponding explanation that a
service contract is available would
appear below this statement separated
by a line to distinguish service contract
availability from warranty coverage:
b SERVICE CONTRACT. A service
contract is available at an extra charge
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on this vehicle. Ask for details as to
coverage, deductible, price, and
exclusions. If you buy a service contract
within ninety days of sale, state law
‘‘implied warranties’’ may give you
additional rights.
(a) Should the Rule be revised to
permit dealers to disclose unexpired
manufacturer’s warranties,
manufacturer’s used car warranties, and
other used car warranties as shown in
Appendices A and B?
(b) What benefits, if any, would
revising the Rule to permit dealers to
disclose warranties as shown in
Appendices A and B provide to
consumers?
(c) What burdens, if any, would
revising the Rule to permit dealers to
disclose warranties as shown in
Appendices A and B impose on
consumers?
(d) What benefits, if any, would
revising the Rule to permit dealers to
disclose warranties as shown in
Appendices A and B provide to
businesses, and in particular to small
businesses?
(e) What burdens, if any, would
revising the Rule to permit dealers to
disclose warranties as shown in
Appendices A and B impose on
businesses, and in particular on small
businesses?
(f) What alternatives, if any, should be
considered? Why? If no alternatives
should be considered, why not?
(g) Does stating ‘‘AS IS’’ - NO
DEALER WARRANTY (See Appendix
A) instead of AS IS - NO WARRANTY
make the Buyers Guide more clear and
understandable to consumers? Why or
why not?
(h) Is checking the box marked ‘‘AS
IS’’ - NO DEALER WARRANTY to
indicate that a dealer does not offer its
own warranty clear and understandable
to consumers when a dealer also checks
one or more of the boxes indicating that
a NON-DEALER WARRANTY from
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someone other than the dealer applies?
Why or why not?
(i) Does stating, ‘‘THE DEALER WILL
NOT PAY ANY COSTS FOR ANY
REPAIRS’’ (See Appendix A), instead of
‘‘YOU WILL PAY ALL COSTS FOR
ANY REPAIRS’’ to explain ‘‘AS IS’’ NO DEALER WARRANTY make the
Buyers Guide in Appendix A more clear
and understandable to consumers? Why
or why not?
(j) Does adding the statement ‘‘FROM
THE DEALER’’ help show that the boxes
marked IMPLIED WARRANTIES ONLY
and DEALER WARRANTY apply only
to warranties that may, or may not, be
offered by the dealer? If so, why? If not,
why not? If not, how could the format
and/or wording be improved?
(k) Does eliminating the lines for text
in the SYSTEMS COVERED/
DURATION section of the Buyers
Guide, as shown in Appendices A and
B, make it easier or more difficult to
disclose each system covered and the
duration of coverage for each system?
Why?
(l) If the Rule is revised to permit
dealers to use the Buyers Guides in
Appendices A and B, what combination
of type size, paper size, and formatting,
particularly the amount of space allotted
for the SYSTEMS COVERED/
DURATION section, should be used to
accommodate the additional text and
other information in the Appendices,
while assuring that the Buyers Guides
are clear and understandable to
consumers? In particular:
(i) Should the Rule be revised to
specify smaller or larger type sizes for
Buyers Guides like those in Appendices
A and B than currently prescribed by
the Rule? Why, or why not? If so,
specify the type sizes.
(ii) Instead of, or in combination with,
changes in type sizes, should the Rule
be revised to specify that Buyers Guides
like those in Appendices A and B be
printed on paper larger than the
currently prescribed 11‘‘ x 7 1/4’’
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42289
minimum? Why or why not? If so,
specify minimum paper sizes, and
identify type sizes if in combination
with a recommended type size.
(iii) Instead of, or in combination with
changes in type size and paper size,
should the space allotted for dealers to
disclose warranty coverage and duration
in the SYSTEMS COVERED/DURATION
section of the Buyers Guide be increased
or decreased? Why, or why not? How do
changes in type size and paper size
affect your answer?
(9) Does the statement ‘‘IMPLIED
WARRANTIES ONLY’’ and
accompanying text clearly disclose that
the dealer offers no express warranty? If
not, how could the disclosure be made
clearer?
(10) Should the Rule’s type style, size,
and format requirements for Buyers
Guides be revised to accommodate
current word processing programs? If so,
why, and how? If not, why not?
(11) What other changes to the format
of the Buyers Guide should be
considered to increase its benefits?
What effect would such changes have
on the costs or burdens imposed by the
Rule? What empirical or other evidence
supports opinions that such changes
would or would not increase costs or
burdens?
(12) What other changes to the format
of the Buyers Guide should be
considered to reduce compliance costs
or burdens? Would such changes have
any detrimental effect on the benefits
provided by the Rule? What empirical
or other evidence supports opinions
about whether such changes would have
a detrimental effect on benefits?
List of Subjects in 16 CFR Part 455
Motor Vehicles, Trade Practices.
Authority: 15 U.S.C. 41-58, 15 U.S.C. 2309.
By direction of the Commission.
Donald S. Clark
Secretary
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[FR Doc. E8–16634 Filed 7–18–08: 8:45 am]
BILLING CODE 6750–01–S]
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Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Proposed Rules
Agencies
[Federal Register Volume 73, Number 140 (Monday, July 21, 2008)]
[Proposed Rules]
[Pages 42285-42293]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16634]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 455
Used Motor Vehicle Trade Regulation Rule
AGENCY: Federal Trade Commission.
ACTION: Request for public comments.
-----------------------------------------------------------------------
SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'')
requests public comments on its Used Motor Vehicle Trade Regulation
Rule (``Used Car Rule'' or ``Rule''). The Commission is soliciting the
comments as part of the FTC's systematic review of all current
Commission regulations and guides.
DATES: Written comments relating to the Used Car Rule must be received
by September 19, 2008.
ADDRESSES: Interested parties are invited to submit written comments
relating to the Used Car Rule review. Comments should refer to ``Used
Car Rule Regulatory Review, Matter No. P087604'' to facilitate the
organization of comments. A comment filed in paper form should include
this reference both in the text and on the envelope, and should be
mailed or delivered to the following address: Federal Trade Commission/
Office of the Secretary, Room H-135 (Annex H), 600 Pennsylvania Avenue,
N.W., Washington, D.C. 20580. Comments containing confidential material
must be filed in paper form, must be clearly labeled ``Confidential,''
and must comply with Commission Rule 4.9(c).\1\ The FTC is requesting
that any comment filed in paper form be sent by courier or overnight
service, if possible, because postal mail in the Washington area and at
the Commission is subject to delay due to heightened security
precautions.
---------------------------------------------------------------------------
\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See Commission Rule 4.9(c),
16 CFR 4.9(c).
---------------------------------------------------------------------------
Comments filed in electronic form should be submitted by following
the instructions on the web-based form at: (https://
secure.commentworks.com/ftc-UsedCarRuleReview). To ensure that the
Commission considers an electronic comment, you must file it on the
web-based form. You may also visit https://www.regulations.gov to read
this notice, and may file an electronic comment through that Web site.
The Commission will consider all comments that www.regulations.gov
forwards to it.
[[Page 42286]]
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and to use in this proceeding
as appropriate. The Commission will consider all timely and responsive
public comments that it receives, whether filed in paper or electronic
form. Comments received will be available to the public on the FTC Web
site, to the extent practicable, at https://www.ftc.gov. As a matter of
discretion, the FTC makes every effort to remove home contact
information for individuals from the public comments it receives before
placing those comments on the FTC Web site. To read our policy on how
we handle the information you submit - including routine uses permitted
by the Privacy Act - please review the FTC's privacy policy, at https://
www.ftc.gov/ftc/privacy.htm.
FOR FURTHER INFORMATION CONTACT: John C. Hallerud, (312) 960-5615,
Attorney, Midwest Region, Federal Trade Commission.
SUPPLEMENTARY INFORMATION:
I. Background
The Commission promulgated the Used Car Rule in 1984 and the Rule
became effective in 1985.\2\ The Used Car Rule is intended primarily to
prevent oral misrepresentations and unfair omissions of material facts
by used car dealers concerning warranty coverage. To accomplish that
goal, the Rule provides a uniform method for disclosing warranty
information on a window sticker called the ``Buyers Guide'' that
dealers are required to display on used cars. The Rule requires used
car dealers to disclose on the Buyers Guide whether they are offering a
used car for sale with a dealer's warranty and, if so, the basic terms,
including the duration of coverage, the percentage of total repair
costs to be paid by the dealer, and the exact systems covered by the
warranty. The Rule additionally provides that the Buyers Guide
disclosures are to be incorporated by reference into the sales
contract, and are to govern in the event of an inconsistency between
the Buyers Guide and the sales contract. The Rule requires Spanish
language versions of the Buyers Guide when dealers conduct sales in
Spanish.
---------------------------------------------------------------------------
\2\ 49 FR 45,692 (November 19, 1984).
---------------------------------------------------------------------------
The Rule also requires other disclosures that must be printed
directly on the Buyers Guide, including:
(1) A suggestion that consumers ask the dealer if a pre-purchase
inspection is permitted;
(2) A warning against reliance on spoken promises that are not
confirmed in writing; and
(3) A list of fourteen major systems of a used motor vehicle and
the major defects that may occur in these systems.
In 1995, as part of its periodic review, the Commission amended the
Used Car Rule.\3\ Specifically, the Commission amended the Rule by: (1)
adopting several minor grammatical changes to the Spanish language
version of the Buyers Guide; (2) permitting dealers to display a Buyers
Guide anywhere on a used motor vehicle so long as the Buyers Guide is
displayed prominently and both sides of it are readily readable; and
(3) allowing dealers to obtain a consumer's signature on the Buyers
Guide to acknowledge receipt.
---------------------------------------------------------------------------
\3\ 60 FR 62,195 (December 5, 1995).
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The Rule provides for both English and Spanish Buyers Guides. In
the past, Commission staff has advised dealers who conduct substantial
numbers of sales in Spanish to display both English and Spanish Buyers
Guides.\4\ In response to questions from industry, the Commission is
seeking comments on whether the Rule should be revised to permit
dealers to use a single bilingual Buyers Guide. The Commission is also
seeking proposals for the design of bilingual Buyers Guides.
---------------------------------------------------------------------------
\4\ See Staff Compliance Guidelines, 53 FR 17,660, 17,664,
17,667 (Illustration 3.10) (May 17, 1988). The Staff Compliance
Guidelines and other information about the Used Car Rule are
available online from the Commission's Web site at: www.ftc.gov.
---------------------------------------------------------------------------
The reverse side of the Buyers Guide contains a pre-printed list of
fourteen major systems and the defects that may occur in those systems.
That list has not been changed since the Used Car Rule was promulgated
in 1984. The list was promulgated from the rulemaking proceeding and
from information gleaned from prior versions of the Used Car Rule. The
Commission is seeking comments on the value of the Buyers Guide's pre-
printed list of major systems and defects and whether the list should
be revised or eliminated.
The Commission is also seeking comments on how well the current
method for disclosing unexpired manufacturer's warranties on the Buyers
Guide is working. In connection with that inquiry, the Commission is
seeking comments on a possible alternative Buyers Guide to aid in
disclosing dealers' warranties, unexpired manufacturer's warranties,
manufacturer's used car warranties, and used car warranties provided by
third parties other than the manufacturer. Examples of Buyers Guides
that incorporate a revised method for disclosing these various types of
warranties are attached to this notice as Appendices A and B.
II. Regulatory Review of the Used Car Rule
The Commission reviews all of its rules and guides periodically to
examine their efficacy, costs, and benefits; and to determine whether
to retain, modify, or rescind them. This notice commences the
Commission's review of the Used Car Rule.
A. General Areas of Interest for FTC Review
As part of its review, the Commission is seeking comment on a
number of general issues, including the continuing need for the Used
Car Rule and its economic impact, the effect of the Rule on deception
in the used car market, and the interaction of the Rule with other
regulations. Since the Commission's last revisions of the Rule in 1995,
new used car products, such as certified used car warranties, have
become increasingly popular. The Commission believes that this review
is important to ensure that the Rule is appropriately responsive to any
changes in the marketplace.
B. Specific Areas of Interest for FTC Review
Since the last revisions to the Rule in 1995, the Commission
occasionally has received informal input regarding the efficacy of the
Rule and requests for clarification about the Rule's application. Some
of the questions included in this notice, therefore, address specific
issues. By including these issues, the Commission intends to facilitate
comment, and the inclusion or exclusion of any issue is no indication
of the Commission's intent to make any specific modifications to the
Rule.
III. Issues for Comment
The Commission requests written comment on any or all of the
following questions. The Commission requests that responses to its
questions be as specific as possible, including a reference to the
question being answered, and reference to empirical data or other
evidence wherever available and appropriate.
A. General Issues
(1) Is there a continuing need for the Rule? Why or why not?
(2) What benefits has the Rule provided to consumers? What evidence
supports the asserted benefits?
(3) What modifications, if any, should be made to the Rule to
increase its benefits to consumers?
[[Page 42287]]
(a) What evidence supports the proposed modifications?
(b) How would these modifications affect the costs the Rule imposes
on businesses, and in particular on small businesses?
(c) How would these modifications affect the benefits to consumers?
(4) What impact has the Rule had on the flow of truthful
information to consumers and on the flow of deceptive information to
consumers?
(5) What significant costs has the Rule imposed on consumers? What
evidence supports the asserted costs?
(6) What modifications, if any, should be made to the Rule to
reduce the costs imposed on consumers?
(a) What evidence supports the proposed modifications?
(b) How would these modifications affect the benefits provided by
the Rule?
(7) How have the 1995 amendments to the Rule affected purchasers of
used motor vehicles? How have the 1995 amendments to the Rule affected
used motor vehicle dealers? Please provide any evidence that has become
available since 1995 concerning the costs, benefits, and effectiveness
of the Rule. Does this new information indicate that the Rule should be
modified? If so, why, and how? If not, why not?
(8) What benefits, if any, has the Rule provided to businesses, and
in particular to small businesses? What evidence supports the asserted
benefits?
(9) What modifications, if any, should be made to the Rule to
increase its benefits to businesses, and in particular to small
businesses?
(a) What evidence supports the proposed modifications?
(b) How would these modifications affect the costs the Rule impose
on businesses, and in particular on small businesses?
(c) How would these modifications affect the benefits to consumers?
(10) What significant costs, including costs of compliance, has the
Rule imposed on businesses, and in particular on small businesses? What
evidence supports the asserted costs?
(11) What modifications, if any, should be made to the Rule to
reduce the costs imposed on businesses, and in particular on small
businesses?
(a) What evidence supports the proposed modifications?
(b) How would these modifications affect the benefits provided by
the Rule?
(12) What evidence is available concerning the degree of industry
compliance with the Rule? To what extent has there been a reduction in
deceptive oral representations and unfair omissions made by used car
dealers concerning warranty coverage since the Rule was issued? Please
provide any supporting evidence. Does this evidence indicate that the
Rule should be modified? If so, why, and how? If not, why not?
(13) What modifications, if any, should be made to the Rule to
account for changes in relevant technology or economic conditions? What
evidence supports the proposed modifications?
(14) Does the Rule overlap or conflict with other federal, state,
or local laws or regulations? If so, how?
(a) What evidence supports the asserted conflicts?
(b) With reference to the asserted conflicts, should the Rule be
modified? If so, why, and how? If not, why not?
B. Specific Issues
(1) Should the Used Car Rule be modified to permit used motor
vehicle dealers the option of using a Buyers Guide that combines both
the English and Spanish language versions of the Buyers Guide into a
single bilingual document? If not, why not? If so, why? If so, how
should bilingual Buyers Guides be designed and formatted? How should
bilingual Buyers Guides be designed and formatted to minimize consumer
confusion?
(a) If recommending that bilingual Buyers Guides should be
permitted, provide as much detail as possible about the form that the
bilingual Buyers Guides should take. Provide examples of bilingual
Buyers Guides for use in states that permit ``as is'' sales (i.e.,
sales in which implied warranties are disclaimed) and states that
prohibit ``as is'' sales (i.e., ``Implied Warranties Only'' sales).
Indicate the type styles, sizes, and format used in examples of
bilingual Buyers Guides that are submitted.
(b) What benefits, if any, would bilingual Buyers Guides provide
consumers? What evidence supports the asserted benefits?
(c) What burdens, if any, would bilingual Buyers Guides impose on
consumers? What evidence supports the asserted burdens?
(d) What benefits, if any, would bilingual Buyers Guides provide
businesses, and in particular small businesses? What evidence supports
the asserted benefits?
(e) What burdens, if any, would bilingual Buyers Guides impose on
businesses, and in particular small businesses? What evidence supports
the asserted burdens?
(f) Question 8 below discusses possible alternative Buyers Guides
intended to facilitate the disclosure of manufacturer's and other
third-party warranties. How would your answers to the preceding
questions about bilingual Buyers Guides change if the Commission
adopted a revised Buyers Guide as described in Question 8?
(2) Should the translation of the Buyers Guide into Spanish be
revised as described below? If so, why? If not, why not?
(a) Should the term ``dealer'' be translated into Spanish as
``concesionario,'' instead of ``distribuidor'' and ``vendedor?''
(b) Should the term ``regardless of'' in the statement below the AS
IS - NO WARRANTY box on the front of the Buyers Guide be translated
into Spanish as ``independientemente de'' instead of ``sean cuales
sean?''
(c) Should the following revisions be made to the Spanish
translation of terms used in the list of major defects in automobile
systems on the reverse side of the Buyers Guide?
(i) Should the term ``Frame-cracks'' in the Frame & Body section be
translated as ``Grietas en el chasis,'' instead of ``Chasis-grietas?''
(ii) Should the term ``Cooling System'' in the Cooling System
section be translated as ``Sistema de enfriamiento,'' instead of
``Sistema de refrigeraci''
(iii) Should the term ``Air conditioner'' in the Inoperable
Accessories section be translated as ``Aire acondicionado,'' instead of
``Acondicionador de aire?''
(iv) Should the term ``Defroster'' in the Inoperable Accessories
section be translated as ``Desempaador,'' instead of ``Descarchador?''
(v) Should the terms ``Not enough pedal reserve'' in the Brake
System section be translated as ``Distancia insuficiente del pedal,''
instead of ``Juego insuficiente en el pedal?''
(3) What purposes, if any, does the list of systems and major
defects that may occur in a used motor vehicle on the reverse side of
the Buyers Guide serve?
(a) What benefits does the list provide to consumers?
(b) What burdens does the list impose on consumers?
(c) What benefits does the list provide to businesses, and in
particular to small businesses?
(d) What burdens does the list impose on businesses, and in
particular on small businesses?
(e) Should the list be retained? Why or why not?
(f) Should the list be modified? If so, why, and how? If not, why
not?
(4) The Rule permits dealers who opt to disclose an unexpired
manufacturer's warranty to add the following statement to the Buyers
Guide below the FULL/LIMITED WARRANTY boxes in the SYSTEMS COVERED/
DURATION section:
[[Page 42288]]
MANUFACTURER'S WARRANTY STILL APPLIES. The manufacturer's original
warranty has not expired on the vehicle. Consult the manufacturer's
warranty booklet for details as to warranty coverage, service location,
etc.\5\
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\5\ 16 C.F.R. Sec. 455.2(b)(2)(v).
---------------------------------------------------------------------------
Separately and beneath that statement, in states that permit ``as
is'' sales, dealers may add:
The dealership itself assumes no responsibility for any repairs,
regardless of any oral statements about the vehicle. All warranty
coverage comes from the unexpired manufacture's warranty.\6\
---------------------------------------------------------------------------
\6\ Staff Compliance Guidelines, 53 Fed. Reg. 17,660 at 17,663
(May 17, 1988).
---------------------------------------------------------------------------
(a) What benefits, if any, does the method permitted by the Rule
for disclosing unexpired manufacturer's warranties provide consumers?
(b) What burdens does the method permitted by the Rule for
disclosing unexpired manufacturer's warranties impose on consumers?
(c) What benefits does the method for disclosing unexpired
manufacturer's warranties permitted by the Rule provide businesses, and
in particular small businesses?
(d) What burdens does the method for disclosing unexpired
manufacturer's warranties permitted by the Rule provide businesses, and
in particular small businesses?
(e) Should the current method permitted by the Rule for disclosing
unexpired manufacturer's warranties be modified? If so, why, and how?
If not, why not?
(f) Should the Rule provide an option to use a similar method for
disclosing other warranties that are included in the price of the used
vehicle, such as manufacturer's certified used car warranties and
warranties provided by other third parties? If so, why, and how? If
not, why not?
(5) Should the optional statement provided by the Rule to indicate
that a manufacturer's warranty applies be revised to alert consumers to
check the warranty booklet for the expiration date of the
manufacturer's warranty by stating: ``Consult the manufacturer's
warranty booklet for details as to warranty coverage, expiration,
service location, etc?'' Why or why not?
(6) Should the Rule require dealers to indicate whether a
manufacturer's warranty applies and provide information about the scope
of that coverage? Why or why not? Should disclosure of manufacturer's
warranties be optional as the Rule currently provides? Why or why not?
(7) Is checking the AS IS - NO WARRANTY box to indicate that the
dealer is not obligated to perform warranty service clear and
understandable to consumers? Why or why not? Does checking the AS IS -
NO WARRANTY box confuse consumers about whether other warranty or
service coverage, such as a manufacturer's warranty, applies? Why or
why not? How could the Buyers Guide be redesigned to prevent consumer
confusion about the meaning of the ``as is'' disclosure?
(8) Examples of revised Buyers Guides that provide a different
method to disclose manufacturer's warranties and third-party warranties
that are included in the price of the used car are attached as
Appendices A and B. Appendix A is designed for use in states that
permit dealers to sell used cars ``as is,'' i.e., without any warranty
from the dealer. Appendix B is designed for use in states that prohibit
``as is'' sales.
The Buyers Guide attached as Appendix A states:
[squ] ``AS IS'' - NO DEALER WARRANTY THE DEALER WILL NOT PAY ANY
COSTS FOR ANY REPAIRS. The dealer assumes no responsibility for any
repairs regardless of any oral statements about the vehicle.
If a dealer chooses to use a Buyers Guide like Appendix A and does
not offer its own warranty, the dealer would check the box to indicate
that the car is being offered ``AS IS''- NO DEALER WARRANTY.
If state law limits or prohibits ``as is'' sales of vehicles or the
dealer chooses to offer the vehicle with implied warranties only when
offering a car for sale in a state that permits ``as is'' sales, the
following should be substituted for ``AS IS'' - NO DEALER WARRANTY, and
its accompanying language:
[squ] IMPLIED WARRANTIES ONLY
This means that the dealer does not make any specific promises to
fix things that need repair when you buy the vehicle or after the time
of sale. But, State law ``implied warranties'' may give you some rights
to have the dealer take care of serious problems that were not apparent
when you bought the vehicle.
Appendix B is a Buyers Guide that uses the above disclosure to
indicate that the dealer is offering implied warranties only.
If a dealer chooses to use a Buyers Guide like Appendix A or B and
the dealership provides its own used car warranty, the dealer would
check the DEALER WARRANTY box, indicate whether the warranty is full or
limited, and identify the percentage of labor and parts that the dealer
will pay for repairs:
[squ] DEALER WARRANTY
[squ] FULL [squ] LIMITED WARRANTY. The dealer will pay -- % of the
labor and ---- % of the parts for the covered systems that fail during
the warranty period. Ask the dealer for a copy of the warranty document
for a full explanation of warranty coverage, exclusions, and the
dealer's repair obligations. Under state law, ``implied warranties''
may give you even more rights.
Immediately beneath this section, the dealer would indicate the
Systems Covered and the Duration of coverage for the identified
systems:
SYSTEMS COVERED: DURATION:
----------------------------------------------------------------------
----
If the dealer does not provide its own warranty and state law
permits the dealer to sell used cars ``as is,'' in the space provided
for the SYSTEMS COVERED/DURATION, the dealer may fill in (or pre-print
or use a rubber stamp) the following statement: ``The dealership itself
assumes no responsibility for any repairs, regardless of any oral
statements about the vehicle. All warranty coverage comes from the
unexpired manufacturer's warranty, manufacturer's used car warranty, or
other used car warranty indicated below.''
The Buyers Guide would have additional boxes below the SYSTEMS
COVERED/DURATION section where the dealer could indicate whether the
dealer is offering a used car with a manufacturer's warranty or other
third-party warranty. If a dealer chooses to disclose manufacturer's
warranties and third-party warranties using Appendix A or B, dealers
would check the appropriate boxes to indicate the types of warranties
that are provided as part of the sales price of the car.
[squ] NON-DEALER WARRANTIES
[squ] MANUFACTURER'S WARRANTY STILL APPLIES.
The manufacturer's original warranty has not expired on the
vehicle.
[squ] MANUFACTURER'S USED CAR WARRANTY APPLIES.
[squ] OTHER USED CAR WARRANTY APPLIES.
Consult the warranty booklet for details as to warranty contract
coverage, expiration, service location, etc.
[squ] NO INFORMATION PROVIDED. The dealer provides no information
about other warranties that may apply.
The Rule's SERVICE CONTRACT box and corresponding explanation that
a service contract is available would appear below this statement
separated by a line to distinguish service contract availability from
warranty coverage:
[squ] SERVICE CONTRACT. A service contract is available at an extra
charge
[[Page 42289]]
on this vehicle. Ask for details as to coverage, deductible, price, and
exclusions. If you buy a service contract within ninety days of sale,
state law ``implied warranties'' may give you additional rights.
(a) Should the Rule be revised to permit dealers to disclose
unexpired manufacturer's warranties, manufacturer's used car
warranties, and other used car warranties as shown in Appendices A and
B?
(b) What benefits, if any, would revising the Rule to permit
dealers to disclose warranties as shown in Appendices A and B provide
to consumers?
(c) What burdens, if any, would revising the Rule to permit dealers
to disclose warranties as shown in Appendices A and B impose on
consumers?
(d) What benefits, if any, would revising the Rule to permit
dealers to disclose warranties as shown in Appendices A and B provide
to businesses, and in particular to small businesses?
(e) What burdens, if any, would revising the Rule to permit dealers
to disclose warranties as shown in Appendices A and B impose on
businesses, and in particular on small businesses?
(f) What alternatives, if any, should be considered? Why? If no
alternatives should be considered, why not?
(g) Does stating ``AS IS'' - NO DEALER WARRANTY (See Appendix A)
instead of AS IS - NO WARRANTY make the Buyers Guide more clear and
understandable to consumers? Why or why not?
(h) Is checking the box marked ``AS IS'' - NO DEALER WARRANTY to
indicate that a dealer does not offer its own warranty clear and
understandable to consumers when a dealer also checks one or more of
the boxes indicating that a NON-DEALER WARRANTY from someone other than
the dealer applies? Why or why not?
(i) Does stating, ``THE DEALER WILL NOT PAY ANY COSTS FOR ANY
REPAIRS'' (See Appendix A), instead of ``YOU WILL PAY ALL COSTS FOR ANY
REPAIRS'' to explain ``AS IS'' - NO DEALER WARRANTY make the Buyers
Guide in Appendix A more clear and understandable to consumers? Why or
why not?
(j) Does adding the statement ``FROM THE DEALER'' help show that
the boxes marked IMPLIED WARRANTIES ONLY and DEALER WARRANTY apply only
to warranties that may, or may not, be offered by the dealer? If so,
why? If not, why not? If not, how could the format and/or wording be
improved?
(k) Does eliminating the lines for text in the SYSTEMS COVERED/
DURATION section of the Buyers Guide, as shown in Appendices A and B,
make it easier or more difficult to disclose each system covered and
the duration of coverage for each system? Why?
(l) If the Rule is revised to permit dealers to use the Buyers
Guides in Appendices A and B, what combination of type size, paper
size, and formatting, particularly the amount of space allotted for the
SYSTEMS COVERED/DURATION section, should be used to accommodate the
additional text and other information in the Appendices, while assuring
that the Buyers Guides are clear and understandable to consumers? In
particular:
(i) Should the Rule be revised to specify smaller or larger type
sizes for Buyers Guides like those in Appendices A and B than currently
prescribed by the Rule? Why, or why not? If so, specify the type sizes.
(ii) Instead of, or in combination with, changes in type sizes,
should the Rule be revised to specify that Buyers Guides like those in
Appendices A and B be printed on paper larger than the currently
prescribed 11`` x 7 1/4'' minimum? Why or why not? If so, specify
minimum paper sizes, and identify type sizes if in combination with a
recommended type size.
(iii) Instead of, or in combination with changes in type size and
paper size, should the space allotted for dealers to disclose warranty
coverage and duration in the SYSTEMS COVERED/DURATION section of the
Buyers Guide be increased or decreased? Why, or why not? How do changes
in type size and paper size affect your answer?
(9) Does the statement ``IMPLIED WARRANTIES ONLY'' and accompanying
text clearly disclose that the dealer offers no express warranty? If
not, how could the disclosure be made clearer?
(10) Should the Rule's type style, size, and format requirements
for Buyers Guides be revised to accommodate current word processing
programs? If so, why, and how? If not, why not?
(11) What other changes to the format of the Buyers Guide should be
considered to increase its benefits? What effect would such changes
have on the costs or burdens imposed by the Rule? What empirical or
other evidence supports opinions that such changes would or would not
increase costs or burdens?
(12) What other changes to the format of the Buyers Guide should be
considered to reduce compliance costs or burdens? Would such changes
have any detrimental effect on the benefits provided by the Rule? What
empirical or other evidence supports opinions about whether such
changes would have a detrimental effect on benefits?
List of Subjects in 16 CFR Part 455
Motor Vehicles, Trade Practices.
Authority: 15 U.S.C. 41-58, 15 U.S.C. 2309.
By direction of the Commission.
Donald S. Clark
Secretary
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APPENDIX A
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APPENDIX B
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[FR Doc. E8-16634 Filed 7-18-08: 8:45 am]
BILLING CODE 6750-01-S]