Sale of Used Motor Vehicles
ACTION: Analysis of public comments on staff compliance guidelines.
SUMMARY: The staff of the Federal Trade Commission publishes its analysis of the public comments received in response to its request for comment on the staff compliance guidelines for the Used Car Rule. This notice summarizes and analyzes the issues raised by the commenters and notes those parts of the guidelines that have been modified in response to the comments. The revised compliance guidelines are published in a separate notice in the Federal Register.
FOR FURTHER INFORMATION CONTACT: Joyce E. Plyler (202-326-3021) or Matthew D. Gold (202-326-3019), Attorneys, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 20580.
TEXT: SUPPLEMENTARY INFORMATION: The Division of Enforcement staff published compliance guidelines for the Used Car Rule in the Federal Register on May 18, 1987. The guidelines are meant to provide guidance concerning how the Rule applies in specific situations. They are the opinion of staff only and have not been adopted by the Commission and are not binding on the Commission. However, the guidelines serve as criteria for the staff in assessing compliance with the Used Car Rule.
Five comments were received during the 30-day comment period after publication of the guidelines.(1) Three comments were submitted by trade associations -- the National Automobile Dealers Association ("NADA"), the National Independent Automobile Dealers Association ("NIADA"), and the National Vehicle Leasing Association ("NVLA"). One bank holding company, First Virginia Banks, Inc., also commented. The fifth comment, from a consumer, did not make specific substantive comments about the guidelines and is not discussed here. The comments raised six substantive issues, which are discussed separately below, in the order of their appearance in the guidelines.
Based on its analysis of the comments, further review of the guidelines, and subsequent Commission action, the staff has made both substantive and editorial revisions.
A. Public Comments
Demonstrators